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Mortgage lenders to offer three month ‘payment holiday’ for coronavirus-affected customers

The Chancellor made the announcement today…

Published

5 years ago

March 17, 2020

Jeremy Sutcliffe / Flickr

The Chancellor of the Exchequer has announced that the government will step in to help businesses and individuals affected by coronavirus.

Rishi Sunak addressed the nation at today’s daily COVID-19 news conference in Downing Street.

The Prime Minister began the briefing by saying that the new measures he announced yesterday will reduce suffering, adding: “I stress that although the measures are extreme, we may have to go further and faster in the coming days to protect the NHS.”

A three month mortgage holiday will most likely mean homeowners have a break from payments over that period, but those months will be added into the end of the term. So a 25 year term would become a 25 year 3 month term. Or at least that’s how it usually works.
— Katie Morley (@KatieMorley_) March 17, 2020

Rishi Sunak then took over, saying he will do ‘whatever it takes’ to support the economy, saying the UK needs a ‘collective national effort’ to protect people and businesses devastated by coronavirus.

He added: “This government will give you all the tools you need to get through this – we will support people, support jobs, we will do whatever it takes.”

As part of this, mortgage lenders are set to offer a three month ‘mortgage holiday’ to help protect anyone who cannot afford to pay, according to the Chancellor, added that they will go ‘much further’ over the coming days.

While a number of banks, including Halifax, Lloyds, RBS, NatWest, TSB, Virgin Money, Clydesdale Bank and Yorkshire Bank say they already give customers the option to pause mortgage payments if they’re struggling, now others will also have to give coronavirus-hit customers a break from paying.

At this point, it’s unclear what help renters will receive.

Mortgage holiday will be welcome- though details will obviously be key.

But important to remember 20% of households in the UK are in the private rented sector, (dominated by poorer households). Clearly if mortgage holders need help, so will those who rent privately. https://t.co/jwTCgRRlYt
— Lewis Goodall (@lewis_goodall) March 17, 2020

The Chancellor went on to unveil an ‘unprecedented package’, giving businesses access to £330bn of government backed loans.

Small businesses can access a loan of up to £5 million, with no interest due in first six months.

For the retail and hospitality sector, he announced a package of no business rates, alongside a £25,000 cash grant available to everyone.

On top of that, the Chancellor addressed people’s concerns about whether insurers would pay out to pubs, clubs and cafes, saying that the Government will make sure insured businesses receive payouts, and non-insured companies get payouts of £25,000.