COVID-19 Guide: Buy-to-Let Landlords and Borrowers
Written on 3 April 2020 by
John Charcol’s resident mortgage expert Nick Morrey gives you his latest update on COVID-19’s effect on the UK mortgage and property markets. You can find our summary below the video.
What Developments Have Been Made Regarding Buy-to-Let Landlords?
- The Government have said that payment holidays will include all buy-to-let landlords as well as all residential borrowers
- This means that if the end date for your existing product is approaching, you’ll need to decide whether you want to do a payment holiday and wait for a product transfer, or whether you’d rather do a product transfer now and hold off until you’re able to do the payment holiday as most lenders cannot do a payment holiday and product transfer at the same time
What Measures Did the UK Government Put in Place for Buy-to-Let Landlords?
- The Government have announced that buy-to-let landlords are able to get a 3 month payment holiday like residential borrowers
What Advice Would You Give to Landlords?
- Talk to your tenants to find out what’s going on and how they are as, although they may not be able to pay rent for a few months whilst their situation changes, you - as a landlord - will face significant costs if you need to replace them – e.g. estate agents, moving costs, etc.
Will There Be Opportunities in the Property Market in the Coming Months?
- There will be opportunities in the next few months in the property market as property prices are likely to take a bit of a tumble
- If you’re looking to expand your portfolio or remortgage some existing properties then now’s the time to get your finances in order and take advantage of the market
What Action Can I Take?
- You can get your finances in order: talk to a mortgage adviser, get a plan of action together and decide on your next steps
- Speak to a mortgage adviser if:
- You’re looking to do product transfers
- You want to know more about payment holidays
- You’re looking to raise money
- You want to see if there’s a better option for you on the market than your product transfer
- If you’re looking for a mortgage, make sure you submit an application to get things ready before rates go up so that you benefit from the lower rates on the market right now
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