After initially saying there were no plans to let landlords enjoy mortgage payment holiday if their tenants got into financial trouble, the government has now relented and included them within its Coronavirus plans.
The government has performed a dramatic U-turn and agreed that landlords should be offered the same three-month mortgage holidays as residential home loan holders after initially leaving them out of its original announcement.
Yesterday morning the lenders’ trade association UK Finance vehemently denied to LandlordZONE that there were any plans to offer landlords the same three-month mortgage payment holiday as home owners.
We were initially told by a member of the communications team at UK Finance that some landlords would be included in the government and industry mortgage relief plans.
But when we ran the story yesterday, its head of press relations said this was incorrect, and we amended the story accordingly.
But only eight hours later Secretary of State Robert Jenrick released a statement on the Ministry of Housing, Communities and Local Government website revealing that landlord are to be offered a three-month mortgage holiday by lenders for the duration of the Coronavirus outbreak.
“Recognising the additional pressures the virus may put on landlords, we have confirmed that the three month mortgage payment holiday announced yesterday will be extended to landlords whose tenants are experiencing financial difficulties due to coronavirus,” says Jenrick.
“This will alleviate the pressure on landlords, who will be concerned about meeting mortgage payments themselves, and will mean no unnecessary pressure is put on their tenants as a result.
“At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances.”