Press release

26 May 2020 London, GB

Comment on the mortgage payment holiday extension

Mortgage payment holiday extension gives breathing space, but will ultimately make debts bigger, so won’t be right for everyone

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Sarah Graham

EY UK Financial Services, Media Relations Senior Manager

Media relations specialist. London cyclist, social organiser, loves to shop and mama to two strong girls

Mortgage payment holiday extension gives breathing space, but will ultimately make debts bigger, so won’t be right for everyone

John Liver, UK Financial Services Partner at EY, comments on the FCA announcement of a mortgage payment holiday extension: “The announcement will provide welcome further relief for homeowners who continue to need support. But, while this gives some breathing space to those struggling financially, extending the ‘holiday’ period will ultimately make debts bigger, so it won’t be right for everyone. Lenders must play a key role in helping their customers find the right option for their personal circumstance. To do this they will need to scale up their processes and operations. Lenders have been anticipating this move, and preparations are well underway, but even so, building scale whilst contacting and dealing with each customer individually and sensitively will be a significant challenge. It should also not be forgotten that longer moratorium periods risk masking the extent to which debts will ultimately be irrecoverable, adding a reporting challenge to the mix for the banks.”