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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.

The 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.

We have 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?

A 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 their finances.

Please be 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 lender. 

Am I eligible?

Lenders 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?

The exact 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.

At the 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 process?

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.

If you have questions, please do not hesitate to contact your assigned consultant directly.

Should I remortgage currently if my fixed term is coming to an end?

If you 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.

Are you struggling with your finances?

If you 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. 

Coronavirus (COVID-19) and your mortgage

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© Private Finance Limited, 2020. Private Finance provides independent mortgage advice and arranges individual mortgage solutions for clients. Private Finance is a trading style of Private Finance Ltd, 29 Lincolns Inn Fields, London, WC2A 3EG, registered in England no. 3855776 and its Appointed Representatives. Private Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA registration number 310566).

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It has been a pleasure to work with Edward, Conor and Donovan. While my mortgage application was caught in the middle of the Covid-19 crisis, they eventually found a way to navigate through the challenges and eventually deliver. I would highly recommend them.
I am a first time buyer and was in need of a mortgage offer quickly so the seller would retract their property from the market. James McCudden, Alex Aiton and Halcyon Griffith assisted me and were as knowledgable as they were expeditious. I had the mortgage offer within 2 weeks and was able to confirm the offer to the seller so I could secure the agreement to purchase. I would certainly recommend the guys above and Private Finance Ltd for expert and efficient mortgage advice.
Thanks to Edward and Donovan for being incredibly helpful in our remortgaging process. They were responsive, straightforward and available for any questions we had. The process was seamless!
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