Warning is made by leading buy-to-let mortgage brokerage, which has claimed lenders expect most landlords to cover an rental shortfalls from their own savings.

A leading mortgage broker has claimed that most landlords who have contacted it about a repayment holiday don’t really need one, and urged them not to ‘jump on the bandwagon’.

Kent-based Mortgages for Business, which offers a national service and specialises in buy-to-let mortgages, says only a small percentage of recent landlord callers to its coronavirus helpline needed a mortgage payment holiday because they are in financial dire straits.

The broker’s Managing Director Steve Olenjnik also claims that most landlords have sufficient cash reserves to cover any rental shortfall should their tenants stop paying.

He also says that landlords who do request mortgage payment holidays could see their credit scores reduced and their ability to secure affordable home loans in the future.

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Mortgage holiday

Somewhat controversially, Olenjnik also claims that those awaiting decisions on a mortgage application who then ask for a holiday on an existing loan may see the former turned down.

“We are having a lot of discussions with landlords around payment holiday requests,” he told Mortgage Strategy.

“Lenders expect landlords to be able to cover void periods under normal circumstances – where a property is empty, and a landlord is not getting any rent – so they will not take kindly to landlords trying to take advantage of them just to build up some cash reserves.  

On 19th March the government revealed that it was to direct lender to give landlords mortgage holidays of up to three months after ‘recognising the extra pressures that face landlords’ during the crisis.


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