In recognition of the fact that the challenges faced by businesses as a result of Covid-19 are likely to quite quickly trickle down to staff and the general public, the government has announced that mortgage lenders will support individuals that are experiencing financial difficulties as a result of Covid-19 by providing mortgage payment holidays of up to three months. For individuals needing this support, the mortgage provider should be the first point of contact.
Whilst the mortgage holiday support is aimed at homeowners, such support is not currently extended to include buy to let mortgages so landlords should carefully check what protection, if any, is in place to protect rental income. It is expected that more support for landlords will be announced shortly.
Recognising the fact that many individuals occupy their homes on a rental basis, it is expected that the government will bring in measures to support tenants experiencing financial difficulties as a result of Covid-19, although further details are not currently available.
In addition to the government led loan repayment holiday initiative, it is encouraging to see that a number of lenders are also starting to offer loan interest repayment holidays of up to six months, as well as offering emergency loans for businesses struggling as a result of Covid-19. This initiative is expected to be extended by the lenders, especially for personal loans.