In these unprecedented times, there are a lot of questions around what the Government has announced as ‘mortgage relief for homeowners’, writes Lyndsey. Hopefully, the points below will help offer some clarification of the finer details.
Many lenders are now offering support to those who are impacted by Coronavirus by agreeing a mortgage payment holiday for up to three months.
Lenders will check if your payments are up to date, you’re not in arrears and can confirm that you’ve been affected – directly or indirectly – by Coronavirus.
Buy to Let (BTL) mortgages
Again, you need your payments up to date and your account to not be in arrears and to be able to confirm that you’ve been affected – directly or indirectly – by Coronavirus. But the big change here is that a payment holiday will only be given if you confirm your tenant is having difficulty in paying their rent due to Coronavirus.
Other things to consider
If you decide to go ahead and request a payment holiday, the maximum time period allowed (under these conditions) is three months. The interest will accrue during the holiday period, and you’ll need to make up deferred payments in the future (this could be at the end of your mortgage term or by making overpayments in the future).
As we are led to believe, this will not affect your credit rating, but please check with your individual lenders.
You may not need to take this option and if you are still able to make payments now. I would continue to do so as you may need this option to be available to you in the future.
Our advisers are all here to advise and help clients through these difficult times as we are still operating at full capacity.