Will lenders follow Italy and offer payment holidays on mortgages during the Coronavirus pandemic?
Some lenders are already offering repayment holidays on mortgages and loans for those customers affected by the Coronavirus outbreak. These include Royal Bank of Scotland (to include NatWest and Ulster Bank), Lloyds Banking Group (to include Halifax, Bank of Scotland and MBNA), and TSB.
Barclays, Virgin (to include Clydesdale and Yorkshire Bank), Metro Bank, Post Office, Co-Operative, First Direct and Santander are not offering currently blanket measures like this. However, they are offering to extend help to those affected on a case by case basis and are encouraging those who are experiencing financial difficulty to contact them.
The criteria for holiday payments will vary from lender to lender, so it’s important to speak to your lender if you are struggling to make the repayments. Any deferred payments will need to be caught up in the future and may have an impact on your credit rating.
What if my tenants can’t pay their rent?
In addition to homeowners struggling to pay mortgages, the impact of COVID-19 will affect renters alike. As a landlord, it is prudent to be aware of this and ensure that you are having conversations with your tenants.