Martin Lewis issues urgent mortgage holiday update on credit rating impact for claimants
During the BBC’s daily Coronavirus Podcast money-saving expert Martin Lewis provided clarification on mortgage holidays. A caller, introduced as Ben from Aberdeen, asked whether taking up the mortgage holiday offer would affect his credit rating. Mr Lewis stated that if the mortgage holiday is an agreed option then activating it will not appear on your credit file.
Ben said: “So, I am looking to find out if taking up the offer from the mortgage lenders regarding this holiday payment affects your credit rating?”
The Coronavirus Podcast host Adam Fleming added: “The mortgage holiday which means you don’t have to pay your mortgage for three months.”
Mr Lewis replied: “It does, you still get paid interest and it all adds up in the end.
“It only adds probably £10 a month for someone with a typical mortgage after the three months are over.
“The answer is simple if you have an agreed holiday mortgage, it does not go on your credit file.
“It will not affect your creditworthiness.”
During the same podcast, Mr Lewis warned employers ignoring Government-imposed new financial rules could leave vulnerable people at high risk of contracting coronavirus with nowhere to go.
Mr Lewis said: “I got something from someone today who should be self-isolating because they’re in the vulnerable group but they have been told by their employer who could furlough them – because you can furlough people who are 12-weeks self-isolators.
“‘No, I think we’re critical, you come to work or you take unpaid leave.’
“The problem with the financial structure of furloughing which I’m generally very supportive of is that it does rely on the employer’s goodwill and the employer to structure the furlough.
“And it’s the employer who makes decisions on who can or can’t be.”
He continued: “So there we have someone who has clear Government guidance they should not be at work but the employer is not invoking that and taking their unilateral decision to say no.
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“The problem is this is virtually unfixable in society at the moment because what the Government is trying to do and what Rishi Sunak is trying to do is re-write decades worth of policies in days and trying to rely on goodwill and upstanding moral behaviour.
“I have to say I think the vast majority will do right.
“But if you fall between the cracks and you want an employer who wants to play fast and loose, then there’s nowhere to go.
“That’s a big difficulty at the moment.”
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