Landlords struggling with mortgage payments look set to get more breathing space after lenders backed plans to extend a moratorium on home repossessions.
The Financial Conduct Authority (FCA) is consulting on whether to hold off on both home and buy-to-let property mortgage possessions until 1st April – a move UK Finance said was necessary to prevent people losing their homes during the pandemic – and by then will mean the measures will have been in effect for 12 months.
The current ban ends on 31st January but the FCA is proposing it should be extended to take account of the worsening coronavirus situation and tighter restrictions.
The only exceptional circumstances would be a customer requesting proceedings to continue or when the property is in vacant measures.
Eric Leenders (pictured) MD of personal finance at UK Finance, says: “The industry is fully supportive of a moratorium…to ensure customers do not lose their home at this difficult time.
“This is part of a package of support provided by lenders for those who need it, including payment deferrals and tailored assistance.”
Mortgage lenders have also extended the provision of mortgage payment deferrals of up to a maximum of six months until 31st July.
A spokeswoman at the FCA tells LandlordZONE that the protection from repossession is intended for homeowners, while most buy-to-let and business loans were likely to be unregulated.
But, she adds: “We currently anticipate that authorised lenders will voluntarily extend these further payment deferrals to customers who have unregulated buy-to-let loans, and if they do not do so this could have an adverse effect on satisfying the threshold conditions.”