The Government has announced that residential buy-to-let (BTL) landlords are entitled to the same three-month mortgage repayment holiday as residential homeowners if they have tenants struggling to pay rent due to Coronavirus (Covid-19).
The Government has urged people not to move home in new guidance for the housing market during the Covid-19 pandemic. The Government says home buyers and renters should, where possible, delay moving to a new house while measures are in place to fight coronavirus. Its guidance says: "Where the property is currently occupied, we encourage all parties to do all they can to amicably agree alternative dates to move, for a time when it is likely that stay-at-home measures against coronavirus will no longer be in place. "If your property is already on the market, you can continue to advertise it as being for sale but you should not allow people in to view your property."
This is extraordinary, unprecedented economic shock therapy – interest rates as low as they've ever been for hundreds of years. The fact the Bank feels the need to do this shows the level of seismic coronavirus tremors running through the nation's finances. The primary aim is economic stimulus. Reducing interest rates is an encouragement to spend and invest – it makes borrowing cheaper, and saving less attractive. And that's what they want – more money flowing through the economy.
The Bank of England has made another shock Bank Rate cut, just eight days after it made an emergency rate cut to 0.25% in response to the economic pressure of the coronavirus outbreak. The Monetary Policy Committee held an emergency meeting on 19th March and unanimously voted to cut the rate to a historic low of 0.1%.
Britain’s banks have revealed how they are going to implement Rishi Sunak’s promise of “payment holidays” of up to 3 months. In guidance issued after the chancellor pledged mortgage support for households affected by the coronavirus, UK Finance, the trade body for the major banks, set out how households can apply. There will be a fast-track system for approval, but not everyone will be granted a payment holiday. The unpaid interest will still be recovered later, but individual credit ratings will not be affected.