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Half of borrowers who’ve missed payments hadn’t arranged payment holiday

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16/11/2020
Despite lenders offering payment pauses throughout the pandemic, not all borrowers have taken advantage of them
Half of borrowers who’ve missed payments hadn’t arranged payment holiday

Nearly half of people who missed payments on credit commitments as a result of COVID-19 say they did not have an agreed payment holiday in place, said Pepper Money.

The specialist lender also found that three-quarters of borrowers who have missed their repayments without first agreeing a payment holiday are concerned that it will negatively impact their ability to get a mortgage in the future.

Paul Adams, sales director at Pepper Money, said: “COVID-19 has been a disruptive influence on the finances of millions of people and official statistics have reflected the popularity of schemes like the mortgage payment holidays, which required customers to contact their lender to arrange a deferral of their payments.

“However, this research shows that many customers have missed credit payments as a result of COVID-19 without a pre-agreed payment holiday in place and three quarters of this group are concerned that it will negatively impact their ability to secure a mortgage in the future.

Adams said that mortgage advisers are well placed to talk through your options based on your individual circumstances, especially if you have missed payment and are concerned about your eligibility to borrow. He added: “There are many lenders that can take a considered and pragmatic view of mortgage applications from customers who have missed payments as the result of a significant life event, and there are few life events as significant as a global pandemic.”

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