London Money urges clients to reconsider repayment holidays
London Money is urging its clients to reconsider contacting their mortgage lenders with regard to a repayment holiday.
As a result of the government announcing the payment holiday initiative, lenders were swapped with calls requesting repayment holidays, which meant many withdrew offerings to combat excessive demand.
Now with many good incentives removed, London Money is asking its clients to consider holding off on their requests.
Martin Stewart, director of London Money, said: “The mortgage payment holiday was a very well-intended initiative by the government.
“Unfortunately, as with many good incentives, there are unintended consequences which can then often have a greater negative impact than the good they were intended to do.
“Brokers are in danger of shooting themselves in the foot if they urge their clients to deluge the lenders on mass, it will simply create a run on the lenders resources.
“Lenders are understandably restricting lending in the current climate and part of that will be down to the fact they are becoming stretched with administration at a time when many of their staff will be self-isolating.
“We are therefore suggesting our clients to hold fire if they can, many will be furloughed and still in receipt of income which, coupled with the fact people are not spending anywhere near as much discretionary money as they used to, should mean that patience could be a very valuable commodity in the future.”