The Government has announced that residential buy-to-let (BTL) landlords are entitled to the same three-month mortgage repayment holiday as residential homeowners if they have tenants struggling to pay rent due to Coronavirus (Covid-19).
What is a mortgage payment holiday?
If you’re adversely affected by coronavirus, the Government has confirmed that you may look to take a mortgage payment holiday on your residential or Buy to Let mortgage for up to three months to help your financial situation.
If you take a mortgage payment holiday, this means that you wouldn’t make mortgage payments for up to three months and these payments will be added onto your mortgage balance. As a result, your mortgage balance will increase and your monthly payment will be recalculated over your remaining mortgage term. Your monthly payment and the amount of interest you pay will increase for the remaining term of your mortgage.
If your mortgage is not in arrears, the mortgage payment holiday will not impact your credit rating, and you will not go into arrears on your mortgage.
If your mortgage is already in arrears, you should speak to your mortgage lender about the options available to you.
If you pay by Direct Debit and your mortgage payment is due soon, you might not be able to arrange the mortgage payment holiday for your next monthly payment.
