Should I take a mortgage payment holiday?

In March, Chancellor Rishi Sunak confirmed that anyone struggling financially as a result of the Coronavirus outbreak will be able to apply for a three-month mortgage payment holiday.

A number of lenders had already announced repayment holidays for those affected by Covid-19, but the Government's announcement means that all lenders have an obligation to honour the three-month time frame for residential and buy-to-let properties. This does not however, mean that mortgage payment holidays are suitable for everyone.

What is a mortgage payment holiday?

Lack of preparation for the unexpected

A quarter of us could only afford to pay household bills for a maximum of three months.

COPING WITH MORTGAGE PAYMENTS

The latest protection research from Scottish Widows reveals a quarter (25%) of us could only afford to pay household bills for a maximum of three months if we or our partner were unable to work due to long-term illness, and just over a quarter (26%) could only make a maximum of three monthly mortgage payments. Just less than a fifth (18%) admit they aren’t sure how long they would be able to cope with their mortgage payments.

I still have a mortgage but have enough money saved to pay it off. My question is should I clear it?

Fairstone adviser Angela Murfitt answers your questions

Q. I am self-employed and own my home. I still have a mortgage but have enough money saved to pay it off. My question is should I clear it? I’m looking to sell the property and buy somewhere else. Am I better off paying the mortgage off now or keeping my money and continuing to save until I find another home and sell this one?