Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps the Government is taking to support people struggling with mortgage payments as a direct result of the covid-19 pandemic.

Working with the FCA, the Government introduced mortgage payment deferrals to provide certainty to homeowners who needed it during the initial stage of the Covid-19 pandemic, and approximately 2.75 million mortgage payment deferrals have been provided to UK borrowers, benefiting people across the country with the period of respite this offered.

While the application deadline for mortgage payment deferrals ended on the 31 March, any existing payment deferrals can remain in force until 31 July, or until an individual borrower reaches their six month maximum entitlement. All credit file reporting will return to normal once payment deferrals have ended.

Following the closure of the application period for mortgage payment deferrals, the FCA have set out detailed guidance which stipulates that firms should continue to provide tailored support and forbearance options for borrowers facing new or ongoing financial difficulties. Borrowers struggling with mortgage repayments should reach out to their lender at the earliest opportunity to discuss the options available to them.