Landlords: how coronavirus impacts your rental properties
For landlords in the UK who are dependent on income from rental property, the Government’s three month freeze on evictions may cause concern. To help those in financial difficulties, some mortgage lenders are offering mortgage holidays to support borrowers who will struggle to make repayments over the next three months.
With the uncertainties posed by coronavirus leaving many in difficult financial circumstances, the Government has put into place an eviction ban to protect tenants who may find themselves unable to pay rent over the next three months.
This means that the usual processes for eviction: the Section 21 notice, to end a fixed-term tenancy; and the Section 8 notice, used when the tenant has broken terms of the tenancy, cannot be put into action by landlords over the next three months.
What if my tenants are unable to pay rent?
If your tenants are unable to pay rent, leaving you in a difficult financial situation, you may be eligible for a three-month mortgage holiday. In addition, at the end of the three month eviction freeze, the Government expects landlords and tenants to “work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances”.
What is a mortgage holiday?
A mortgage holiday is an agreement made between a lender and a borrower, allowing the borrower to temporarily stop or reduce monthly mortgage repayments.
How do I get a mortgage holiday?
To get a mortgage holiday, you will need to speak directly to your lender – this is not a government scheme. Money Facts has put together a useful table detailing mortgage holiday policies from some of the UK’s most popular buy-to-let lenders.
Information in this article correct on 3 April 2020.