Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the mortgage payment holiday scheme for business owners in financial difficulties as a result of the covid-19 outbreak.

We have extended the period that borrowers can apply for a mortgage holiday to support all homeowners in financial distress. Mortgage borrowers who have not yet taken a payment holiday are able to take a payment holiday for up to six months. Borrowers who have taken an initial payment holiday can top this up to six months. The Financial Conduct Authority’s (FCA’s) guidance released on 17 November sets out that mortgage holidays (up to a maximum of 6 months) will remain an option for borrowers until 31 March 2021. However, the FCA guidance also notes that all payment holidays will need to end by 31 July 2021.

For borrowers that have already taken a full six months payment holiday, the FCA’s guidance sets out that firms should continue to provide support through tailored forbearance options for those borrowers that are facing ongoing financial difficulties. This could include granting new mortgage payment holidays.

For businesses and business owners needing further support the business lending schemes are still open for applications, these loans can be used for any business purposes.