UK launches 'debt freeze' protecting borrowers

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By Tom Brown
27 Apr 2021

UK government is introducing a debt freeze for suffers from mental health problems, introducing a 60 day “breathing space” where lenders will be prevented from communicating with borrowers who are in arrears. Mental health has also come to the forefront of debate around how to help so-called ‘mortgage prisoners’ stuck on high interest rates after the financial crisis.

The debt respite scheme gives a borrower the right to legal protection from creditors, in a growing sign that regulators are emphasising forbearance over foreclosure during the pandemic. 

Borrowers cannot refer themselves, so the 'debt freeze' can only be started by a debt advice provider or a local ...

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