THE PROFESSIONAL ASSOCIATION FOR LANDLORDS
BACK TO MENU
- Consider applying for a mortgage ‘holiday’. But remember that this doesn’t meant you will be let off payments completely, so check the terms of this offer.
- Will the bank/mortgage company as to the terms of such an offer?
- Will the ‘holiday’ be added to the end of your term, meaning you will be paying interest on interest?
- Or will they expect the missing amount to be made up in a stated amount of time?
- Will a mortgage holiday affect your credit rating for the future? The FCA have advised lenders an application should not affect a future credit rating.
- Be aware of what you are agreeing to.
- To apply for a mortgage holiday you must:
- For buy to let landlords the key criteria is that their tenant must have been directly or indirectly affected by the coronavirus.
- The other key criteria is that you must be up to date on your current mortgage payments.
- Be careful if you have a foreign currency mortgage as they might not nbe included. This might include the Bank of Ireland.
- Keep an eye on advice – see our colleagues at Mortgage for Business. See also the advice given by the Money Centre.
- Consider getting advice from an Independent Financial Adviser (IFA)
- Note that The City regulator has told banks and building societies that they must not repossess people’s homes during the coronavirus crisis, and cannot charge fees for payment holidays granted as a result of the pandemic.
- To ease cash flow pressures for UK VAT registered businesses, VAT bills from now until the end of June, will be deferred until the end of the tax year.
See the complete Government announcement here.
- See the advice from Which here.