How to Treat Your Lender in a Difficult Time

There are many tales around of lenders taking calls from their borrowers asking for mortgage ‘holidays’, in the face of the pandemic. However, it is also clear that many of these applicants are not raising legitimate concerns, purely as a result of Covid 19. It is particularly the case that it can play out badly for the borrower if they are currently or shortly to be seeking extra funds for other projects.

Think long and hard before you apply, because it could affect future applications. So, you will need to be able to show clearly why your income has gone down (or your costs have gone up) before the lender is likely to grant you any leeway. Plainly, the reason(s) must be Covid–related. Plainly, the debt will not be forgotten, and interest will carry on rolling up.

Leading on from this, it must not be regarded as a ‘holiday’, to be enjoyed as if it is leisure. It will be seen by the lender as a declaration that the borrower has very quickly fallen into financial hardship and they are formally asking for deferred payment because they cannot afford the payments, and they have no back up plan, savings or other financial resources to rely on to continue to meet their obligations.

Contact Charles at or your local FCG office to review your cashflow options before making decisions in the short term that you might regret longer term!

Posted in Business Management, Lincoln.