The Leeds Building Society has updated and improved its online application process for temporary deferral of mortgage repayments after the government extended the scheme until the end of October and the Financial Conduct Authority (FCA) updated the finalised regulatory guidance on 16 June.
Jaedon Green, the Leeds Building Society’s chief customer officer, said: “While it remains best advice to pay your mortgage if you can, we know some families who’ve taken a payment holiday already will welcome being able to now defer repayments for up to six months.”
“For those households with temporary financial pressures as a result of Covid-19, this is important functionality and we’re proud to be one of the very first lenders to be able to make it available to borrowers in need.”
The first borrowers who chose a mortgage payment holiday are now coming to the end of this three month period and need to consider what to do next.
Green said: “Customers should wait for our letter or email at the end of their mortgage payment holiday, which will explain the impact on their repayments and any action they need to take.
“The letter or email will direct them to the relevant part of our website, which we continue to refresh with the latest information and guidance.”
To make the process as straightforward as possible, Leeds Building Society has added to its website’s functionality so customers can review and choose the most suitable option.
“The pandemic is a worrying time for so many people, about their finances and much more,” said Green.
“We’ve tried to make the process as straightforward as possible for anyone who’s taken a mortgage payment holiday since March or is thinking they may need to in the coming months.
“At the end of the mortgage payment holiday, we’ll recalculate the monthly repayment, to ensure the deferred repayments are spread over the remaining term of the mortgage. There is also an option to extend the mortgage term.
“While we’ll continue to work with any borrowers experiencing longer-term financial difficulties, customers who applied for a mortgage payment holiday as a precaution should be aware the deferral of monthly payments or extending the mortgage term results in additional interest payable over the life of the mortgage.
“For this reason, our borrowers have the option to repay some or all of the deferred repayments by lump sum immediately if they wish.”