William Tate runs the Frome independent brokers TW mortgages, advising thousands on getting the best deals for their home loan.

Today (May 22) he gave Nub News his expert opinion on the latest news - that mortgage holders can ask for another three month payment holiday due to coronavirus.

But as with the warning 'There is no such thing as free lunch' Will warns that the same applies to not paying your mortgage.

Will writes:

The financial conduct authority has announced that the option to apply for a mortgage payment holiday has been extended for a further three months. This means that anyone experiencing financial difficulty during this time will have further relief from their mortgage payments. If you are able to pay your full mortgage payment then it is advised you continue to do so because the payment holiday is not a grant.

If you take a payment holiday you still owe the same capital to the lender and so you will accrue more interest, meaning you pay more for your property overall. However, if it would help get your finances back on track then you should be able to contact your lender directly and say that you wish to apply.

Despite the fact the mortgage market is going through a tumultuous time, it can actually be a good time to take out a new loan. The Bank of England base rate is at an historic low, meaning that a lot of lenders' rates have lowered to follow suit. Many people are taking this opportunity to seal their remortgage deals. Mortgage offers are often available for 6 months so you could be locking in your next deal, even if your remortgage isn't due until November. The advantage of this is that you could apply now while the rates are low and then watch to see how the market changes between now and November. If rates go down further you can switch your deal and if rates go up you can sit back, safe in the knowledge that you have the best deal secured.

Many buyers have been put off pursuing a purchase over the last few weeks because of the complications that lockdown has presented but a slight easing of lockdown measures has meant that things have started to get moving again. Several prominent lenders have announced that they are able to carry out valuations again which is very important because the inability to value a property was holding up many purchase applications.

There are still some restrictions in place. Furloughed workers may not be able to apply until they are back on full salary, although some lenders are still allowing applications. The self employed might see extra measures being taken when their application is being assessed. Some lenders are looking at the last 3 months' income for self employed people, as well as the normal annual accounts because they want to see that the business hasn't been affected. If business has been affected then they may ask for you to have been earning for 3 months before considering an application.

It is a little harder to take out a mortgage at the moment but those in the right position can still proceed with a remortgage or purchase. The best thing to do is speak to a broker and explain your situation and they will quickly be able to assess your ability to take out loan and explain your options.

the TW website

You may have to pay an early repayment charge to your existing lender if you remortgage