Money Saving Expert Martin Lewis has issued a warning over taking a mortgage payment holiday.
Because of the coronavirus people are able to take a three month holiday on their mortgage payment, without their credit reference being affected.
But the interest would still accumulate and borrowers would have to pay the cash back in future payments.
That respite from payments would end for the first applicants in June, and Martin said he expected that the regulator would extend the scheme either this week or early next week.
But despite the payment holiday not going on your credit file it could still affect a future mortgage application, Martin found out after investigating a tip-off.
Martin said: "It doesn't affect your credit rating, but some lenders can see it on open banking data or payment records which show you've had a payment holiday, which could hurt future applications.
"If you need the money because of cash flow issues, take the holiday, but remember it is an emergency payment.
"But saying that taking a holiday if needed is much better than missing a payment."
