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Your stamp duty and mortgage holiday questions answered

Tue 22 Dec 2020





As we emerge from the country's second lockdown and pick back up with the tier restrictions, we're seeing yet more reports of possible job cuts and unemployment concerns up and down the country.
 
If you have questions about your mortgage, we'd like to help guide you.
 

Earlier this year, the introduction of the government's three-month mortgage scheme saw a huge uptake, with lenders granting as many as 2.5 million payment holidays.*
 
Now that they've extended it, with a deadline for deferral applications at the end of January 2021, it's possible once again for homeowners and landlords to obtain financial support.
 
If I apply for a mortgage holiday, will it impact my credit?
 
The Financial Conduct Authority (FCA) have publicly confirmed that requesting a six-month mortgage holiday or extension will not negatively impact your credit.
 
If, however, it comes to the end of the six months and a customer is still in an unstable financial situation, they are advised by the FCA to seek support from their lender.
 
At this point, a tailored support plan will need to be arranged, which could show up on your credit file.
 
Although this is a viable lifeline, it is in the borrower's best interests to only use this scheme if absolutely necessary, as you will accrue interest without making any payments for the duration of the mortgage holiday.
 
What's next for the property market?
 
With the stamp duty deadline looming, there has been a crying demand for the government to commit to an extension beyond March 31st 2021.
 
Thousands of property sales are currently moving through the various homebuying stages, with sellers, buyers and property investors keen to make the cut.
 
As we're seeing such high demand, there have been inevitable delays from conveyancers, lenders and other industry professionals depended on to reach completion.
 
It's imperative at this time to remain level-headed, to prepare any necessary paperwork to expediate the process, and to keep in regular contact with your agent.
 
If in doubt about your mortgage options, you should consult your lender directly, as they will provide further clarification on what is right for your personal situation.
 
*Source: Homes & Property
 

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