Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect on the financial situation of recipients of the mortgage holiday scheme’s payment of mortgage breaks appearing as missed payments on credit checks; and if he will make a statement.

On 20 March 2020, the Financial Conduct Authority (FCA) published guidance on what it expects mortgage lenders to do for consumers facing financial difficulties as a result of COVID-19.

As part of this guidance, the FCA set out that the consumer’s credit score should remain unaffected by taking out a mortgage payment holiday. This has been achieved through the masking of the arrears status on the credit file. This remains the case for all borrowers accessing up to six months of mortgage payment holidays – borrowers can apply for a payment holiday until 31 March 2021.

HM Treasury and the FCA have been working closely with lenders and the credit reference agencies on this matter throughout the crisis and will continue to do so to ensure the best outcome for consumers and lenders.