10:16 AM, 20th March 2020, About 2 years ago
UK Finance has confirmed Buy to Let (BTL) lenders will look to assist all customers by extending the option of a payment holiday of up to three months to residential BTL landlords who have tenants who are experiencing issues with their finances, as either a direct or indirect result of Coronavirus, as well a three month moratorium on possession action to start from 19 March 2020 confirming properties will not be repossessed during this period.
Stephen Jones, UK Finance CEO, said: “Monthly mortgage payments tend to be the largest outgoing for the vast majority of households and lenders want to reassure both homeowners and landlords who have tenants who may be affected financially that the industry is working hard to put measures in place to support them during these uncertain times.
“In addition to the industry’s support for residential homeowners, mortgage lenders are extending the same support to buy-to-let landlords who have tenants experiencing issues with their finances as a result of COVID-19 and the options include a payment holiday of up to three months.
“For those customers already experiencing financial difficulty, lenders have also agreed a three-month moratorium on residential and buy-to-let possession action. The industry wants to reassure customers that they will not have their homes repossessed at this difficult.
“All customers who are concerned about their current financial situation should get in touch with their lender at the earliest possible opportunity to discuss if this is a suitable option for them.”
Lenders have confirmed:
A payment holiday will be available to all customers who are up to date on their mortgage payments.
A payment holiday will also be available to all Buy-to-Let landlords whose tenants have lost income because of the impact of COVID-19. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.
Customers will still owe the money where a payment holiday has been granted and interest will still accrue, so if you are able to make part of your normal mortgage payment to reduce the money you owe or your interest charges then you should consider doing so.
They will make every effort to ensure that the payment holiday does not negatively impact on your credit file.
If you are already in arrears, you should contact your lender as soon as possible. Lenders will review any change to your circumstances to ensure that payments remain sustainable.
If you are already experiencing financial difficulty, lenders have also agreed a three month moratorium on residential and buy-to-let possession action from 19 March 2020, meaning that no homes will be repossessed at this difficult time.
With a payment holiday you will not have to make any monthly mortgage payments for a set amount of time, in this case up to three months.
However, it’s important to remember that you still owe that money and the interest on your mortgage still accrues during a payment holiday.
At the end of the payment holiday your provider will contact you to assess your circumstances and agree a manageable way for you repay the interest charges incurred and make up the deferred payments. Each lender will have a range of options available to help you to do this.
Eligibility for a payment holiday:
To be eligible for a payment holiday you will need to be up to date on your mortgage payments.
If you are a Buy-to-Let landlord, it will be available if your tenants have lost income because of the impact of COVID-19.
There a number of options available and payment holidays aren’t always the most suitable solution for everyone. By speaking to your mortgage provider, they can tailor the best option for you.
To apply for a payment holiday:
If you are a Buy-to-Let landlord, you will need to self-certify that your tenant’s income has been impacted by COVID-19. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.
At the end of the payment holiday your provider will contact you to assess your circumstances and agree a manageable way for you repay the interest charges incurred and make up the deferred payments. Each lender will have a range of options available to help you do this.
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