Mortgage lenders announce further support for homeowners and landlords
Lenders representing banks, building societies and other specialist lenders have come together to announce additional support for homeowners and residential landlords.
The support for landlords includes extending the option of a payment holiday of up to three months to residential buy-to-let landlords who have tenants who are experiencing issues with their finances, as either a direct or indirect result of Coronavirus. There will also be as well a three-month restriction on residential and buy-to-let repossession action to start from 19 March 2020 helping provide buy to let landlords with the reassurance that they will not have their properties repossessed at this difficult time.
Commenting on the measures of Lenders, 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 on 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 time and therefore, these measures will start from tomorrow (19 March 2020).
“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.”
Mr Sasha Charles of Landlord Advice UK said:
“Landlords are urged to be flexible. Any landlords whose tenants are directly or indirectly affected by the Covid-19 should negotiate a payment plan with the tenants in the event the tenants’ income has been adversely affected as a result of the Covid-19 situation. Landlords are not required, nor expected, to provide rent-free periods for their tenants. But landlords should ensure the tenants are given flexible payment options. Landlords should seek advice if their tenants are in rent arrears and we are continuing to provide legal advice and assistance through this difficult time.”
Landlords should also read the update on the emergency legislation that has been proposed in relation to evictions during the COVID-19 outbreak. Read the updated on the Coronavirus Bill.
Source: Landlord Advice UK
Author: Sasha Charles
Date: 24th of March 2020