Several UK mortgage lenders have announced loan repayment holidays to support homeowners affected by coronavirus. Via Homes and Property
Royal Bank of Scotland said it will defer mortgage payments for up to three months to affected borrowers.
The state-backed bank is 62 per cent owned by the taxpayer and has announced the emergency measures to support customers who might lose their jobs or see their income decline if they cannot work due to illness or lockdown.
A spokeswoman for RBS said: “We are monitoring the potential impact of coronavirus across all our customers to ensure we can support them appropriately through any period of disruption. We have a strong track record in working with our customers who are affected by disruption outside of their control.”
TSB also said borrowers could have mortgage repayment holidays for up to two months.
UK Finance said all its members were putting measures in place to support borrowers affected by the virus. Stephen Jones, the industry body’s chief executive said: “All providers are ready and able to offer support to their customers who are impacted directly or indirectly by COVID-19, which could include offering or increasing an overdraft or allowing repayment relief for loan or mortgage repayments: asking for help early is key.
“We would encourage customers who think they may be affected to contact their provider as soon as possible to discuss the support available to them.”
Miles Robinson, head of mortgages at online broker Trussle, said: “Self-employed and gig economy workers might be concerned about their income becoming more unstable, at least temporarily, which may affect their ability to pay the bills at the end of the month.
“The good news is that mortgage lenders don’t live under a rock. They know that coronavirus is causing severe uncertainty. They’re also aware that as a result of the outbreak, some customers might be unable to make their monthly mortgage repayments.”
UK lenders adopted similar measures in the 2009 recession.
