8:33 AM, 16th April 2020, About A year ago 6
Mortgage broker, Mortgages for Business, are warning landlords not to spoil bank’s goodwill towards landlords in real trouble by applying for a payment holiday if you don’t need one. They report most landlords enquiring about payment holidays are not struggling to pay their bills and only a minority calling its switchboard have legitimate concerns about covering their costs.
Mortgages for Business managing director Steve Olejnik said in a statement: “We are having a lot of discussions with landlords around payment holiday requests. “Only a handful of them are raising legitimate concerns about how to pay their mortgage in the face of the covid-19 pandemic.
“Landlords must be aware that any requests could potentially damage any approaches to that lender.
“Lenders expect landlords to be able to cover void periods under normal circumstances so they will not take kindly to landlords trying to take advantage of them just to build up some cash reserves.
“One borrower with three live cases with their lender approached them for repayment holidays on another, existing loan. The lender immediately cancelled all three.
“Smart landlords, who want to capitalise on short-term house price falls and expand their portfolios when the lockdown is lifted, should think long and hard before approaching their lender.
“Don’t jump on the repayment holiday bandwagon. Any deferred payments will have to be made at some stage and it could create problems down the line especially when you come to refinance.”
Most Buy to Let lenders will ask landlords to prove they are in financial hardship before granting any holiday request.
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