Nov

LATEST: Landlords to access mortgage holiday extension scheme too

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Landlords have been reassured by the Government that they can benefit from the new extended mortgage holiday scheme.

The Financial Conduct Authority (FCA) and the Ministry of Housing have updated their websites to clarify that buy-to-let borrowers are covered by its new guidance during the pandemic.

Hard-hit landlords have the option of asking their lender for a payment break of up to six months, with applications open to 31st January.

The extension also applies to those who have already taken a payment pause, who will be able to request a further deferment to bring them to the six-month limit.

The FCA says: “Borrowers, including those with a buy-to-let mortgage, who have been impacted by Coronavirus and have not yet had a mortgage payment holiday will be entitled to a six-month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, says it’s good to see such decisive action taken so quickly, as extending payment deferrals for a further six months will provide borrowers with some comfort.

However, he advises landlords: “Only ask for a payment deferral if you need one. Interest will still rack up and you will have more to pay off in the long run so the option should only be utilised by those who really need it.”

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