HOMEOWNERS now have until the end of October to apply for a mortgage holiday if they're struggling due to the coronavirus crisis.

The Financial Conduct Authority has also extended a ban on home repossessions for another four months, so owners can self-isolate according to Government policy if they're ill without fear of losing their property.

Households whose finances have been hit hard by the COVID-19 lockdown can apply for a payment break on their mortgage of up to three months.

Some 1.7million payment freezes have been granted so far, according to banking trade body UK Finance – accounting for around one in seven UK mortgages.

Applications for the payment freezes were due to come to an end in June but now they have until October 31 to ask for the help.

The missed cash will need to be repaid by either adding it onto your remaining payments or the end of your mortgage term – but homeowners have been warned that it could end up costing them £2,769 in higher repayments.

The watchdog is urging borrowers to continue making the payments if they're able to do so.

The FCA also says that banks must offer borrowers further support if they are still in financial difficulty after the payment break, including a further three month freeze on repayments.

More to follow…

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