Following the news that mortgage holidays will be extended, the BSA has released data outlining perceptions around this form of support.
Following the news from HM Treasury regarding the mortgage holiday extension, the Building Societies Association (BSA) has released data outlining perceptions around this form of support.
Among those that have taken up a mortgage holiday, 90% found it to be fairly or very helpful, with only 8% saying it has been not very or not at all helpful.
For landlords, however, the proportion that have found payment holidays to be not helpful rises to 21%.
The majority (68%) of these borrowers are fairly or very confident that they will be able to meet their mortgage payments once their payment holiday ends.
However, 27% are not very or not at all confident that they will be able to pay.
Landlords seem to be less certain than homeowners, with 34% stating that they are not very or not at all confident.
The preferred repayment method for most is to repay over the remainder of their mortgage term, with 53% of homeowners and 32% of landlords favouring this approach.
Among homeowners taking a mortgage holiday, 15% say that they would seek an extension to their payment holiday, compared to 18% of landlords.
Commenting on the announcement regarding the mortgage holiday extension, Robin Fieth (pictured), chief executive of the BSA, said: “We welcome today’s announcements by the Economic Secretary to the Treasury and the FCA and the close collaboration between Treasury, lenders and regulators which has led to them.
"Looking ahead we would encourage those borrowers who are able to pay to do so, as this will be to their own longer-term benefit.
"However, borrowers can also be assured that there will be no cliff-edge moment as tailored support will be available for those who need it, whenever that may be.
“Mortgage payment holidays will continue to be available until 31 October for those who have not had one.
"We are pleased that there will be no automatic blanket extension to existing payment holidays as we do not believe extending payment holidays will be in the best interests of most borrowers, although individual extensions remain an option which may be right for some.
“Possession is always a last resort for lenders and with the extension of the repossessions moratorium, homeowners should also be reassured that they are secure in their own homes.
“Lenders will be contacting all borrowers with a repayment holiday before it comes to an end to lay out potential next steps and the support that is available.
"Any borrower with concerns is encouraged to get in touch with their lender sooner rather than later.
"Lenders will be working hard to provide support to all who need it as quickly as they can.”
