What Help is Being Offered to Homeowners During Coronavirus
Over the past week the government have made a series of announcements which have both addressed the social obligations of dealing with the Coronavirus outbreak and also addressing the concerns of the nation with the financial obligations that we all have to meet. With the government appreciating that they are force-ably putting millions of people out of work by trying to tackle the virus, for many home owners who have mortgages to pay the government have kicked mortgage lenders into touch and have provided much relief to address the concerns of the nation. In this article we will discuss the current measures that the government have put in place to help homeowners.
Mortgage Lenders are not allowed to Repossess your Home During Coronavirus
For the foreseeable future the FCA has ordered Banks and Building Societies to not repossess any homes during the Coronavirus outbreak. Furthermore, any current repossession orders that have come about from before the virus outbreak need to stop and this will surely provide a much needed relief for those who may have been facing repossession since before the outbreak. During this week banks have experienced more phone calls than they can handle from worried home owners who have called to receive advice on the current situation.
Facing repossession is a tough time for anyone and as-well as showing compassion this measure from the government is certainly sensible as if it weren’t in place than the government may have faced a re-homing crises. It is unknown how long these measures to prevent repossessions will be in place but one would expect these measures to be in place not only during the virus outbreak but for quite some time after. It’s interesting to note that the Banks are being forced into an awkward situation where they don’t have any power to effectively retrieve their loans, for once the homeowner has the upper-hand!
Payment Holiday from Paying the Monthly Mortgage Has Been Offered
For anyone in the UK affected by the Coronavirus you can apply to not pay your mortgage for at least the next three months. This doesn’t mean that the government will pay your mortgage it’s more a rearrangement of when the mortgage needs to be repaid. The FCA has outlined guidance on how to treat customers fairly and what the expect from the lenders during the Coronavirus outbreak. The Chancellor, Rishi Sunak announced that this will start a 3 month payment holiday and can be reviewed further in the future. For mortgagees the lender should provide the option to either extend the mortgage term by a few months at the end, or increase the monthly mortgage payments by a small amount each month.
The government have announced a huge injection of physical cash to employees covering up to 80% of their salary up to £2500 and other financial measures announced in the chancellors statement on March 20th. As well as fiscal measures It’s clear to see that the government have reached around and gone to great depths to reorganise the cash flow of the nation. Payment breaks and no possibility of repossession is a great help for the British public and the government have done a good job in forcing the banks to provide these breaks. Financial help for the self employed and for those on zero hours contracts is still expected to be announced but for now it’s safe to say that all mortgage owners are protected at least for the next few months.
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If you are already on the property ladder and are looking to sell due to being concerned about were prices are heading then we can buy any house in the UK. Regardless of condition we will consider all sorts of property and it’s worth checking to see if we can make you an offer as an alternative to waiting to see if your house can be sold on the open market.
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