Mortgages

Residential and buy-to-let repossessions halted for three months

Rozi Jones
|
19th March 2020
house mortgage late payment due repossession arrears
"For those customers already experiencing financial difficulty, lenders have also agreed a three-month moratorium on residential and buy-to-let possession action."

UK Finance has announced that lenders have agreed a three month moratorium on residential and buy-to-let possession action, starting from today.

The trade body says the move will help "provide customers with reassurance that they will not have their homes repossessed at this difficult time".

The decision is further to the Chancellor’s announcements this week regarding the mortgage industry’s support for homeowners who are experiencing financial issues due to Covid-19.

Stephen Jones, CEO of UK Finance, said: “Monthly mortgage payments tend to be the largest outgoing for the vast majority of households and lenders want to reassure both homeowners and landlords who have tenants who may be affected financially that the industry is working hard to put measures in place to support them during these uncertain times.

“In addition to the industry’s support for residential homeowners, mortgage lenders are extending the same support to buy-to-let landlords who have tenants experiencing issues with their finances as a result of COVID-19 and the options include a payment holiday of up to three months.

“For those customers already experiencing financial difficulty, lenders have also agreed a three-month moratorium on residential and buy-to-let possession action. The industry wants to reassure customers that they will not have their homes repossessed at this difficult time."

Robin Fieth, chief executive of the Building Societies Association, added: "Building societies are acutely aware that this is a worrying time for those with a mortgage or who pay rent as both typically account for a significant proportion of household expenditure. Now is a time for lenders to be flexible. The steps being taken by the industry today will offer some breathing space for those affected by the Covid-19 situation whether directly or indirectly."

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