Experian confirms mortgage holidays will not damage credit ratings

Jake Carter

March 18, 2020


Credit agency, Experian has confirmed the credit scores of borrowers who take a three-month repayment holiday will not be affected – as long as lenders report it correctly.

Experian said that payment holidays can be a feature of a lending product, or where the lender chooses to offer a payment holiday in exceptional circumstances outside of the customer’s control.

It outlined that during this payment holiday the account should not be recorded as having any form of detrimental arrears.

Furthermore, the credit agency said that should a lender agree to offer forbearance or a payment holiday to a borrower, it expects a lender to report a status code ‘U’.

This would not result in a negative impact on a consumer’s credit score.

A spokesperson for Experian, said: “Lenders offering their customers forbearance, such as payment holidays, in response to the Coronavirus (Covid-19) outbreak are not expected to register late or missed payments on customers’ credit reports. This is in line with industry guidelines. 

“Importantly, it is ultimately up to each lender to decide how best to support their customers and how this should be reflected on their credit reports, although the government has confirmed that payment holidays will be available for residential mortgages.

“We urge anyone worried about meeting their regular credit payments to discuss the situation directly with their lenders, so they can provide help and guidance.”

Sign up to our daily email