Mortgage lenders push back against automatic payment breaks during lockdown

A senior mortgage broker said borrowers will not have the time to apply for a mortgage break on an individual basis

The automatic payment breaks ended at the start of the autumn and 24,000 home loan borrowers were unable to restart paying their mortgages in full by mid-October.

Mortgage lenders have pushed back against a call by a leading broker to re-introduce automatic payment breaks for people who will be unable to work during the latest lockdown, saying they will continue to assess claims on the existing case-by-case or individual basis.  

Senior mortgage broker Michael Dowling, who has held senior positions in the industry, said there was a need to bring back the automatic payments breaks because borrowers will not have the time to get the necessary documentation that is required to apply for a mortgage break on an individual basis, and that the lenders will run out of time to assess the applications.