Homeowners and Buy to Let landlords who are affected by coronavirus can apply for mortgage payment holidays of up to three months.
How it will work?
You should contact your lender directly ‘at the earliest possible opportunity’ if you are concerned about meeting your repayments because of the outbreak.
If you do not know have contact details, we’ve included a list of contact details for your lender. Be aware that lenders will assess options on a case by case basis.
The mortgage payment holidays (or mortgage relief for homeowners as it’s officially known) are a short-term measure and won’t kick in automatically.
When you pause your payments, the capital (the amount outstanding on your mortgage) you owe remains the same. But the interest will continue to accrue, which means it will take you longer and will cost more to pay off your mortgage.
If a lender approves your application, they should contact you at the end of the payment holiday to assess your circumstances.
The banking and financial services trade association, UK Finance, says that if borrowers are in financial difficulty, the lender will ‘come to an agreement to recover the customer into a sustainable position on their mortgage’ while minimising the risk of repossession.
What about my credit score?
Guidance from UK Finance confirms that lenders offering payment holidays are not expected to register late or missing payments on customers’ credit reports. That said, responsibility lies with the lender.
You should check your credit report regularly to make sure the information held about you is correct and up to date.
What if I’m already in arrears?
UK Finance says that payment holidays will only be offered to customers who are up to date with their mortgage repayments.
Borrowers who are already in arrears should contact their lender, who will review the existing arrangements. There is a possibility they will relax their usual affordability testing.
Buy to Let mortgages
The government now allows those with Buy to Let mortgages to apply for a mortgage payment holiday.
This should help landlords whose tenants are experiencing financial difficulties.
If landlords allow tenants to pause their rent payments, both parties will be expected to work together to establish an ‘affordable repayment plan’ at the end of the three-month period.
What to do next?
If you are experiencing difficulties, do not wait or feel embarrassed. These are unprecedented times. You can contact [link to contact page] The Mortgage Dog and we will speak to you about your options.
We have set up a support group on Facebook (COVID-19 North East Support Group – Finance Services] for advice and the latest news about your finance and the coronavirus.
Important telephone numbers
We’ll do our best to update this list as we can. Please be patient with the banks, they are all receiving a high volume of calls.
RBS 0345 301 6910
NatWest 0345 303 0191
Halifax 0345 850 3705
Lloyds 0800 783 3534
TSB 0345 835 3380 or online form (https://www.tsb.co.uk/help/mortgage-repayment-holiday-request/)
Principality 0330 838 7581
Virgin Money 0345 602 8301
Clydesdale 0800 121 4203
Nationwide 0800 464 30 30
Santander 0800 389 7000 or online form https://mortgagesignup.santander.co.uk/onlinecredential/mortgage-holiday
Deferred or reduced payments
HSBC 0345 587 3471
Reviewing Individual circumstances
Skipton 0345 850 1711
Yorkshire BS 0345 1200 200
No clear guidance yet
Barclays 0800 022 4022 Furness 0800 220 568
Platform 01752 236 550
If you need contact details for any other lender, contact us and we will be able to help you.
Approval Number: Sol8674
Expiry Date: 25/03/2021