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  • Jordan Alexander
    • Apr 24, 2020
    • 2 min read

Struggling with Mortgage payments?


The Coronavirus pandemic has put many homeowners and Landlords in financial difficulty due to pay cuts, job losses or tenants being unable to pay their rent. It's estimated that over 1.2 million homeowners have applied for the mortgage relief which has been put into place by the government.


Firstly we would advise contacting your lender and informing them of your new financial position. Most lenders have set up systems to protect their customers whether that be mortgage payments, credit card debts or even car finance. We have compiled a list of coronavirus support lines within most mainstream banks.


You could be entitled to a 3 months mortgage holiday


The chancellor introduced new legislation in March which is aimed at supporting those who are now struggling to pay for their essential items such and food, bills and utility costs. The new offer states a 3 month voluntary mortgage holiday with your lender if you can prove that you are in the above criteria. This voluntary solution could save you a lot of stress and further discomfort during these times. It may also be worth knowing that you must be able to provide satisfactory evidence such as letters from employers, Bank statements or you may not qualify.


We believe that interest will still be chargeable for those who take the mortgage relief solution by adding it to the total amount owed, However, we expect this will not be requested in full and accepted via a payment plan when you are in a better position financially.

That being said it would be wise to only apply for this mortgage relief if you have absolutely no other way of surviving during this crisis.



Will, it cost me more to take mortgage relief?


Most lenders will have their own protocols when it comes to recouping any loss on payments they may have received due to the mortgage relief option.


As mentioned above one of the ways would be for the outstanding cost to be spread over a period of months and paid back in stages. Alternatively, the length of your term would be increased by how many months it will take you to clear the outstanding amount.


Everybody's personal circumstances are different so we would advise speaking to your lender on which payment option will be the best for you.



Support with essential bills

https://www.citizensadvice.org.uk/debt-and-money/if-you-cant-pay-your-bills-because-of-coronavirus/


Financial support if you are Business owner, Self Employed

https://www.gov.uk/business-coronavirus-support-finder



Bank Mortgage Relief contact numbers






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