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Mortgage Break.
Our Property Law Solicitors in Lancaster like to keep up-to-date with the world of property law. A recent update comes from the Financial Conduct Authority and affects those people who may be struggling to make the agreed payment under the terms of their mortgage due to financial difficulties caused by COVID-19, the current coronavirus world-wide pandemic. 
So, if you’re wondering whether this payment break could help you, read our Property Law Solicitors in Lancaster’s explanation of the update, below. 

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How do I know if I am entitled to a payment break? 

If your financial circumstances have changed, or change before the deadline (which you can find out more information about, below), due to COVID-19, you may be entitled to a payment break on your mortgage. Each mortgage provider will assess your entitlement to a break based on their own criteria. 

How do I request a payment break? 

You should contact your mortgage company directly to request any payment break. If your circumstances have changed due to COVID-19, most lenders will, presumably, be accommodating about a payment break, based on guidance released by the Financial Conduct Authority. 

What if I have already requested a payment break? 

Based on the guidance released by the FCA, those customers who have already received a payment break may be able to have a further break, including a full or part payment holiday for a further three months. 
For those customers who have not applied for a payment break, they now have until 31st October 2020 to do so. 

If I don’t make my mortgage payments, will my home be repossessed? 

During the COVID-19 pandemic, there was a ban put in place which prevented mortgage lenders from repossessing customer’s homes. This has now been extended until 31st October 2020, to prevent mortgage companies from evicting customers and preventing them from self-isolating. 

How will I make up any missed payments during my break? 

Your lender will discuss any options with you near to the end of your payment break. This could include adding the payments to the end of your term (extending your original mortgage term by the number of months ‘missed’) or by increasing the monthly payment that you make for the remainder of your term. Your lender may have other options available to you, and you would need to discuss these with them directly. 

Will any payment break affect my credit score? 

The FCA has specified that any payment break should not have any negative impact on the customer’s credit score. This will mean that the payment should not show as missed, and therefore, unless there are any other circumstances negatively impacting your score, this should not decrease. 

How can I get further information about payment breaks? 

You can find useful information about mortgage, and other forms, of payment breaks on the FCA’s website, here
You can read more information about the FCA update on’s article, here

How can MG Legal help? 

Whilst our team of Property Law Solicitors in Lancaster cannot offer financial guidance, even in relation to mortgages, we can help if you have decided to sell your property, purchase a new property or re-mortgage your current property.  Our team offer excellent fixed fees in relation to residential and commercial property sales and purchases, and property re-mortgages or transfers.  You can contact our Property Law Solicitors in Lancaster online, here, or email MG Legal’s service is rated as one of the top 3 in Lancaster by but don’t just take our word for it – you can read our client’s 5 star reviews, here

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