Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the proposed three month mortgage holidays on individuals credit scores.

With regards to personal credit ratings, payment holidays can be a feature of lending products or can be offered by lenders in exceptional circumstances outside of the customer’s control. This covers a multitude of potential scenarios, illness being one of them. Where payment holidays as a result of COVID-19 are agreed with a lender, we would expect lenders to ensure that taking a payment holiday should not impact credit scores. Ministers and officials are working closely with industry to protect consumers from harm during these unprecedented times.