Mar

Breaking: Mortgage holidays will only apply to ‘amateur’ landlords, not rental businesses

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Trade body UK Finance has told LandlordZONE that the three-month mortgage holiday will only be available to landlords who operate their properties as sole traders, but will not apply to those who have business mortgages.

The government has revealed that it has persuaded mortgage lenders to give landlord 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.

Trade body UK Finance has told LandlordZONE this morning that the mortgage holiday is only available to ‘amateur’ landlords who operate their properties via personal residential buy-to-let mortgages, and not for those who operate properties via a business.

“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.

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.”

View Full Article: Breaking: Mortgage holidays will only apply to ‘amateur’ landlords, not rental businesses