Banks reject borrowers who took payment breaks

Banks are turning away some mortgage applicants who took repayment holidays amid the coronavirus crisis, despite ministers and credit agencies saying pausing repayments would not impact their ability to borrow, reports the Mail on Sunday. Sources said borrowers who made use of payment holidays have since received initial confirmation of their credit worthiness when applying for new mortgages, only to be denied a loan after a more detailed analysis. One mortgage source said it was “reasonable” for banks to take a dispassionate view rather than lend to someone whose financial position was now uncertain. MP Siobhain McDonagh said she intends to write to Chancellor over the matter.

Mail on Sunday (19/07/2020)