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Press comment: Chancellor announces emergency three month mortgage holiday

10 March 2020

If you are covering the announcement by Chancellor Rishi Sunak that borrowers impacted by the coronavirus will get a three month mortgage payment break, please see the following comment from Charlotte Nixon, proposition director at Quilter Financial Planning:

"Many lenders such as Lloyds Banking Group and NatWest have said publically that they are putting in measures to protect their mortgage customers in light of the biggest health crisis this nation has faced in a century. However, today’s extra assurances from Chancellor Rishi Sunak that lenders will offer a three month mortgage holiday will do a lot to quell the nerves of all those currently worried about their mortgage.

"At this uncertain time three months may not be enough for some people but Sunak did mention that this was just the next step of the government’s measures so borrowers may still be set to get more if the crisis is prolonged further.

"Most borrowers will choose not to take the holiday if they are able to avoid it, as delaying also extends the borrowing period, which isn’t normally a good idea unless it is really essential. This new option should only be used by those who simply can’t meet repayments because of the crisis and need the breathing space to stabilise their finances.

"This news comes after The Bank of England already put forward a rate cut to reduce the base rate to just 0.25%. For homeowners, this is likely to mean that the low interest borrowing available at the moment will probably continue to be on offer for some time to come.

"The tighter affordability rules in place today should ensure that fewer people find themselves in a position where they struggle to keep up on their mortgage repayments, however the Chancellor’s new mortgage holiday will be a relief to those worried as the crisis evolved."

For more information contact

Alex Berry
02380 726260
07741 151931
alex.berry@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.