Advice for those on mortgage holidays

The Halifax has some tips for those who are taking mortgage holidays. ■ Restart payments if you can.

It is best to return to payments as soon as you feel able to. There is a temptation to continue the break on your mortgage payments to reduce monthly outgoings, however it is important to remember that the amount you pay each month will go up after a payment holiday, as interest continues to accrue to make up for the suspended payments. If you’re not able to restart payments, don’t worry as there will be advice your bank can offer you.

■ Plan for both the short and long term. When considering whether to extend your mortgage payment holiday, it is important to assess both your current financial situation and think ahead into the future. In the short term, you will need to weigh up whether you have enough funds to cover the short term outgoings and in the long term what the overall cost of borrowing will be.

The Halifax understand this is an incredibly difficult situation and we are here to help our customers talk through their financial concerns and help them to prioritise what matters most. By plotting out your expected income and outgoings on a monthly basis, this will help you to visualise when might be the best time to restart payments.

■ Speak to friends and family. A strong support network has never been more important, especially if you are experiencing financial difficulty. Talking about money with family and friends can help you see the bigger picture and learn from the experiences that others have been through.

■ Use online resources to help. As COVID 19 has affected many people across the UK, call centres will be busy. Online advice and support is available, including online calculators. Changes to your mortgage and extending mortgage holidays for buy-to-lets can all be made online.