Trade body UK Finance has told LandlordZONE that the three-month mortgage holiday will only be available to residential home owners.

The government has revealed that it has persuaded mortgage lenders to give customers a mortgage payment holiday of up to three months if they are experiencing issues with their finances as a result of Coronavirus, including tenants who stop paying their rent.

“Mortgage lenders will support customers who are experiencing issues with their finances as a result of COVID-19 and the options include a payment holiday of up to three months,” says Stephen Jones, CEO of UK Finance.

It also says that landlords who have tenants who are unable to pay their rent should contact their lender as soon as possible to discuss the options that may be open to them.

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But UK Finance is keen to underline that the mortgage payment holiday is not free money. Landlords will have their payment reduced to zero for the period, but interest will continue to added to their mortgage balances.

“Where repayments are deferred for a time, the borrower will need to make up these repayments in the future, which could be over the remaining term,” says UK Finance.

“Providers will look at customers’ individual circumstances and offer support on a case-by-case basis.

“All providers are ready and able to offer support, we would encourage customers to speak with their provider at the earliest possible opportunity to discuss the options available to them.”

Please note: this story originally included a report that the mortgage holiday would include ‘amateur’ landlords with buy-to-let mortgages, however despite initially confirming this was true, UK Finance has re-contacted LandlordZONE to say that the mortgage holiday will not include buy to let mortgages of any kind.

6 COMMENTS

  1. It would be nice to see something being done by the Landlord groups and organisations to recommend to government that they did something over the next few months to support private landlords who will undoubtedly be the ones losing out when tenants can’t pay their rent. As everyone in the private rental sector knows most landlords don’t have many properties and rely on the income as either their only or main source of income. Any rent free periods, which is what is insinuated by all the media should be given to tenants, will be a direct burden on private landlords. Landlords should be treated in the same way that small business are being protected and given financial help to support tenants that find themselves unable to afford to pay their rent.

    • Its not the landlord that needs support its the tenants who can’t pay the rent , easiest system would be a direct payment system straight to the landlords because realistically giving tenants the money as they do with housing benefit often doesn’t get to the landlord

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