Leeds Building Society updates mortgage holiday application service

Jessica Bird

June 17, 2020

Leeds Building Society

Leeds Building Society has updated its online application process for the temporary deferral of mortgage repayments.

This follows the government’s extension of the scheme until the end of October, and the Financial Conduct Authority’s (FCA) updating of the finalised regulatory guidance on 16 June.

Leeds Building Society has added to its website’s functionality so customers can review and choose the most suitable option.

For borrowers directly affected by the COVID-19 pandemic, the society has implemented a dedicated information page.

It has also committed to waive any arrears fees until the end of June and will not seek possession of any properties before the end of October, unless the borrower requests it.

Jaedon Green, chief customer officer at Leeds Building Society, said: “While it remains best advice to pay your mortgage if you can, we know some families who’ve taken a payment holiday already will welcome being able to now defer repayments for up to six months.

“For those households with temporary financial pressures as a result of COVID-19, this is important functionality and we’re proud to be one of the very first lenders to be able to make it available to borrowers in need.”

Jaedon added: “Customers should wait for our letter or email at the end of their mortgage payment holiday, which will explain the impact on their repayments and any action they need to take.

“The letter or email will direct them to the relevant part of our website, which we continue to refresh with the latest information and guidance.

“The pandemic is a worrying time for so many people, about their finances and much more.

“We’ve tried to make the process as straightforward as possible for anyone who’s taken a mortgage payment holiday since March or is thinking they may need to in the coming months.

“At the end of the mortgage payment holiday, we’ll recalculate the monthly repayment, to ensure the deferred repayments are spread over the remaining term of the mortgage.

“There is also an option to extend the mortgage term.

“While we’ll continue to work with any borrowers experiencing longer-term financial difficulties, customers who applied for a mortgage payment holiday as a precaution should be aware the deferral of monthly payments or extending the mortgage term results in additional interest payable over the life of the mortgage.

“For this reason, our borrowers have the option to repay some or all of the deferred repayments by lump sum immediately if they wish.”

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