Coronavirus (COVID-19) and your mortgage
With uncertainty rife and many us
looking set to be at home for the time-being, you will of course be thinking
about your personal finances, including your mortgage.
government has announced a £350 billion support package, including support for
businesses, and have asked mortgage lenders to act, in the form of mortgage
holidays of up to 3 months.
put together a summary of information that you may find useful at this time
below, however if you do have any further questions, please pick up the phone
and speak to one of our consultants. We are all working from home, but it is
business as usual.
What is a mortgage holiday?
mortgage holiday is quite simply that, a temporary break from your mortgage
repayments for up to 3 months. This is to help people reduce the burden on
aware that interest will still accrue during this holiday period you will still
be required make up these repayments at some point over the rest of your
mortgage term and the terms surrounding this will vary depending on your
Am I eligible?
are letting anyone impacted by Coronavirus, be it directly or indirectly, and
who is up to date on their mortgage payments and not in arrears, apply for an
automatic 3-month mortgage holiday. You will just need to self-certify that you
are impacted – lenders will not complete an income expenditure assessment, or
an assessment of alternate payment options as ordinarily required under
Mortgage Conduct of Business (MCOB) rules.
How do I apply?
process will vary by lender and the best thing to do if you are affected is
contact them directly and explain your situation. They will then explain the
process and what happens next, however as outlined above no evidence is
required and the usual assessments will not apply.
end of three months, the lender will agree an arrangement to pay with you,
according to your circumstances to recover any shortfall, while ensuring that
the mortgage remains affordable and sustainable going forward.
What does this all mean if I have a mortgage application in
If you have a mortgage application in progress, that will not change and any
offers or decisions in principle will remain in place. Please rest assured that
our expert consultants will still be working hard on your behalf and providing
the same high standard of service you are accustomed to – though processing
times with lenders may be slightly longer than normal.
have questions, please do not hesitate to contact your assigned consultant
Should I remortgage currently if my fixed term is coming to an
are coming to end of your fixed term you can continue to remortgage as normal.
Given the recent emergency interest rate reduction and thus the fact mortgage
rates are low it may be a good time to consider your options.
you struggling with your finances?
are struggling with your finances or simply have some concerns you would like
answered, you can contact the Money Advice Service, a free service run by the
government, on 0800 138 7777 or visit their website.
Do you need further support?
This is a unique and incredibly challenging time and you are not alone if you
are struggling with your finances and your mental health. If you feel you
require support, please
find a list of services and helplines here from the mental health charity Mind. And
remember to reach out to friends and family for support.