Could you benefit from repaying your mortgage early?
The average homeowner will be 57 before they’re able to fully repay their mortgage, so paying off the debt early is a desirable financial goal.*
If you have any concerns regarding your property-to-let, please get in touch with your Property Manager on 0208 487 9090.
Rent should be paid as usual. If rental payments become difficult, we are encouraging tenants to contact us early. We will approach any cases where a tenant’s situation has changed as a result of the pandemic, on a case by case basis, updating you at every stage.
The Government is encouraging any landlord who is unable to meet mortgage payments on their buy-to-let property during this time to apply for a mortgage holiday. You can apply online and the terms of a mortgage break vary between lenders. Useful link: Financial Conduct Authority – How to apply for mortgage payment holiday
So long as you are up to date with your payments prior to March 2020, you should be eligible for this. Visit the website of your lender or contact them to find out and for details on all other terms and conditions.
At the end of the mortgage holiday, mortgage lenders will have their own policies regarding how payments will be made up in the future. Hence it is the future payments which require financial planning. Interest rates will apply but lenders are not allowed to add additional fees during the pandemic.
No but Government advice to banks and lenders is clear. The Government are urging them to:
In addition, legal action around repossession of property has been suspended by the Government until further notice.
The three key considerations here are that, following Government actions to protect tenants from potential homelessness at this time:
All things considered, we urge you to approach serving three months notice as a last resort. The courts will be extremely busy when they are back up and running, leading to delays in obtaining a court date (approximately six months from now: three months notice and court waiting list). In addition, while the country is in lockdown, replacing tenants is difficult.
In any cases where a tenant finds themselves unable to meet their rental payments, we will engage in open conversations with them, obtaining as much information as possible in order to find a solution that leaves both you and your tenant in the safest scenario possible. You will be updated at every stage.
“Since the Coronavirus outbreak, ARLA Propertymark has been engaging with governments and politicians across the UK to ensure agents and landlords have information and resources they need to protect tenants and #KeepTheRentFlowing.”