The government has extended monetary support for those in need of a mortgage holiday, however it has not extended the maximum six months one can be in receipt of the holiday.
An estimated 2.6 million people deferred their mortgage payments since the start of the pandemic, with roughly 140,000 still continuing to do so.
Whilst the government has said it will offer more money in order to continue the support, many of those in need of the payment deferral will be unable to access it as they have already exceed their six months.
Jeremy Leaf, estate agent and former RICS residential chairman, while in the support of the extension, points to those left out of the scheme through having already exceed the maximum duration.
He said: “Some borrowers will be concerned that they have exceeded their limit in terms of payment deferrals and will have no option but to go cap in hand to their lender.”
In addition, Leaf believes that borrowers will be concerned about whether or not the holiday will affect their credit rating, despite assurances to their contrary.
Leaf said: “There may be solutions if you are furloughed and perhaps going to lose your job, but have another job lined up at the end of January.
“However, those with no prospects on the horizon may be worried, individual circumstances could be very different.”
Furthermore, Leaf outlined that a lender’s stance is crucial.
He said: “If a lender believes that the debt is at such a level that it could take its chances and sell the property that could result in an increase in repossessions or sales, which would have repercussions for the market, activity and prices.”