Mortgage Payment Holidays Extended to Buy-to-Let & Help-to-Buy
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The moves will be permitted by emergency legislation which will be “taken forward as an urgent priority”.
A statement from the Ministry of Housing, Communities and Local Government (MHCLG) called this an important step as it ensured parity of support, for private mortgage holders.
“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,” it said.
“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.”
Help to Buy
On Help to Buy borrowers those struggling to pay due to coronavirus will be offered interest payment holidays and other flexible payment strategies.
Help to Buy: Equity Loans are interest-free for the first five years so this change will apply to those who took out the loan before 31 March 2015.
Issues will be considered on a case-by-case basis but customers experiencing difficulty related to Coronavirus should first contact their main mortgage lender to discuss revised payment arrangements and then contact the equity loan administrator.
Homes England Help to Buy director Will German said the body was seeking to reassure borrowers that it will offer similar options to their main mortgage lender.
“We will do all we can to support Help to Buy customers through this unprecedented period of economic uncertainty,” he said.
“Like other lenders, we will offer payment holidays for those who are struggling to pay interest fees on their equity loans.
“We will also offer a range of flexible payment options to defer interest payment for a period. In all cases, we will seek to support households in difficulty.
“Please don’t struggle in silence. As soon as you think you might have difficulty making payments on your Help to Buy: Equity Loan account, get in touch – help is at hand,” he added.
No-one forced out
Housing Secretary Robert Jenrick MP said: “The government is clear – no renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.
“These are extraordinary times and renters and landlords alike are of course worried about paying their rent and mortgage. Which is why we are urgently introducing emergency legislation to protect tenants in social and private accommodation from an eviction process being started.
“These changes will protect all renters and private landlords ensuring everyone gets the support they need at this very difficult time.”
National Residential Landlords Association chief executive Ben Beadle added: “We recognise the exceptional circumstances and we will work collaboratively with government to ensure these measures protect both landlords and tenants.”
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