Mortgages will soon not be just another thing to worry about as coronavirus begins to take a toll on finances. Rishi Sunak today continuingly reiterated his stance that the government will provide as much support as possible to affected families
In his latest announcement, he detailed the following:
“At Budget last week, I committed £1billion to support the financial security of vulnerable people, through a half billion boost to the welfare system, and a half billion pound Hardship Fund for Local Authorities.
“Following discussions with industry today, I can announce that for those in difficulty due to coronavirus, mortgage lenders will offer at least a three month mortgage holiday – so that people will not have to pay a penny towards their mortgage while they get back on their feet.”
“At this uncertain time three months may not be enough for some people but Sunak did mention that this was just the next step of the government’s measures so borrowers may still be set to get more if the crisis is prolonged further.
“Most borrowers will choose not to take the holiday if they are able to avoid it, as delaying also extends the borrowing period, which isn’t normally a good idea unless it is really essential.
“This new option should only be used by those who simply can’t meet repayments because of the crisis and need the breathing space to stabilise their finances.”
Despite this news, some have detailed that it may not go far enough to support the UK population.
With owning a house becoming something of a luxury, many people will be left out of this support.
There are millions of people in the UK who are renting rather than buying a property, with the latest figures from the ONS detailing that the number of households in the private rented sector in the UK increased from 2.8 million in 2007 to 4.5 million in 2017, an increase of 1.7 million (63 percent) households.
Because of this fact, some have called on the government to push this support further.
As Franz Doerr, founder and CEO of flatfair detailed: “It is pleasing to see that the government is taking measures to ensure landlords are protected during this crisis with a three month mortgage holiday, but support must also be offered to tenants as well, who may very well be unable to make their payments in the months ahead.
“The impacts of Covid 19 are just becoming visible and it is crucial that everyone pulls together to help us all come through this.”
It should be noted that the government have highlighted that they will provide as much support as possible as the situation emerges.
Because of this, there may be further announcements made in the coming weeks which could benefit renters.