It’s probably not the kind of holiday you were hoping for this year, but it might just be your best offer in current times – welcome ‘Mortgage Holiday’. This is a Government policy giving homeowners and landlords some solace in the current climate offering them a pause of up to 3 months on payments.
To qualify for this as a buy to let landlord, your tenants must be financially affected by Covid-19 and the expectation is that landlords will pass on this relief in payments to their tenants. The ‘holiday’ does mean that your mortgage will take a little longer to pay off, and while you’ll still owe the bank the same amount of capital, interest will continue to build; therefore it’s advised that if you are financially capable, you should continue payments as normal.
If you are in any current arrears with your mortgage provider this does not mean that you cannot benefit, as in every situation, you will need to contact your provider to discuss your individual situation and go from there.
There are many circumstances which may arise where tenants will request to end their rental agreement early, especially when it comes to student areas with courses finishing early and students moving back in with family. In this situation, it is again best to look into taking out a mortgage holiday.