In these unprecedented times, many people are struggling to deal with the economic impact of the ongoing COVID-19 Coronavirus outbreak.
The Government has pledged to do “whatever it takes” to help individuals who are experiencing financial distress.
But what options are available to help you through these difficult times?
Question : I have an ongoing property purchase
Answer :
On 26 March 2020, the Government published new advice on home moving during the coronavirus outbreak, which puts the property market effectively on hold.
The guidance advises that:
- Buyers should delay their moves until the current measures are lifted; and
- If contracts are already exchanged, you should look to agree a delay with the other parties in the chain.
In response, the UK Finance – the representative body for the banking industry – has said that all mortgage lenders are looking to enable borrowers who have already exchanged contracts to extend their mortgage offer for up to three months so the move can be delayed.
If your circumstances or the terms of the purchase change significantly during this time and continuing with the mortgage would cause financial hardship, UK Finance has said that your lender will work with you to help you manage your finances.
Question : I want to apply for a mortgage
Answer:
Several lenders have withdrawn from the market as they are unable to carry out physical valuations and are needing to divert resources towards helping existing customers in need.
Many of those still in the market have reduced their maximum loan-to-value (LTV) to 60 per cent.
Question : I am struggling to pay my mortgage
Answer:
There are a range of options which may be available to you, depending on your circumstances, including:
- Government-backed three month mortgage repayment holiday
- Converting your mortgage from capital repayment to interest only
- Further advance options
- Remortgaging options
- Equity release
We will of course update this information regularly to let you know about any additional measures the Government announces to help through these difficult times.
We are operating business as usual and our support team are available to discuss your individual situation.
For advice and information to help you make the right decisions for you and your family, please get in touch with us.