The FCA has confirmed the support mortgage borrowers will receive if they continue to face payment difficulties due to coronavirus. The guidance covers those who still face financial difficulties, as well as those whose financial situation may be newly affected by coronavirus after the current guidance ends.
How pension schemes provide tax relief to their members so what is the difference between net pay and relief at source? Net pay schemes can sound very misleading because the contributions are paid out of the gross earnings before any tax is deducted. This means that for those that pay tax it automatically reduces their taxable earnings so they will immediately pay less tax. On the flip side, it means that for those that don't pay tax they won't benefit from any relief.
With the past decade have driven the base rate to just above zero, and now the Bank is debating whether to follow the example of the eurozone, Japan and several other countries in setting a negative interest rate.
The Government has extended the completion dates for Help to Buy homebuyers who reserved their homes by 30th June 2020. The deadline for practical completion will move from 31st December 2020 to 28th February 2021. Homebuyers who have experienced severe delays due to Covid-19 will now have until 31st May 2021 to reach legal completion. The legal completion date for homebuyers who have reserved since 1st July 2020 remains as 31st March 2021. In a statement published on Friday evening, the Ministry of Housing, Communities and Local Government said: “The government is also announcing an extra measure to protect existing customers who have experienced severe delays as a result of coronavirus. “Homes England will work with those who had a reservation in place before 30 June to assess their situation and look to provide an extension where necessary. “In which case, they will have until 31 May 2021 to legally complete.”
The FCA has issued new guidance stating that lenders should allow mortgage prisoners to delay their payments on maturing interest-only mortgages until 2021 due to the ongoing impact of Covid-19. In a statement issued today, the regulator recommends that firms "allow borrowers to delay repayment of the capital at maturity on interest-only and part-and-part mortgages up to 31 October 2021, provided borrowers are up-to-date with payments and they continue to make interest payments". The guidance aims to protect interest-only and partial capital repayment customers whose mortgages have recently matured or will mature during the next 12 months.