Published On: Thu, Mar 26th, 2020

Martin Lewis Money Saving Expert: Urgent mortgage holiday advice on credit rating impact | Personal Finance | Finance

During the BBC’s daily Coronavirus Podcast money-saving expert provided clarification on 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.

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“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.

“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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