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HSBC mortgage payment holiday and arrears policy goes live

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  • 24/03/2020
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HSBC mortgage payment holiday and arrears policy goes live
HSBC borrowers, including those in arrears, can now apply for a mortgage payment holiday online.

 

The bank made its online form available this morning, after building a solution from scratch for its borrowers because it did not previously offer payment holidays to mortgage customers.

Borrowers completing the form will receive a call back from HSBC withing seven days to discuss their options.

Borrowers who have already called HSBC and left their contact details will be called back from tomorrow.

The bank also confirmed that people in arrears are not disqualified from taking a payment holiday.

Andrew Montlake, managing director of Coreco, said: “Everyone understands that it is not just hard for brokers it is hard for the lenders as well.

“I am impressed by how hard HSBC has worked to get this system up and running and extremely pleased that they are helping people in arrears.

“These borrowers make up an important part of the market which should not be ignored. Brokers and lenders should be working in partnership to help all clients.”

The chancellor announced that borrowers facing financial difficulty with residential and buy to let mortgages would be eligible for a payment freeze of up to three months to give them breathing space if their health, jobs or businesses are affected by the spread of coronavirus.

Not all borrowers who are in arrears are being allowed to apply for a payment holiday.

Like HSBC, some banks and mutuals, such as Virgin Money and Yorkshire Building Society are allowing homeowners who are behind on their regular payments to still apply for the freeze.

Whereas borrowers who are in arrears with Halifax, Nationwide, TSB and NatWest are currently not eligible for the three month holiday.

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