Home-movers impacted by coronavirus to be offered mortgage extensions by lenders
Home-movers whose moving process has been impacted by the coronavirus outbreak are set to be offered mortgage extensions by their lenders, it has been announced today.
Lenders have agreed to help home-movers who have exchanged contracts and agreed completion dates by offering mortgage extensions of up to three months.
A mortgage extension could mean pushing back the start date of a mortgage deal, or extending a mortgage deal at the end of its term, and this will vary by lender.
For full help on dealing with the impact of coronavirus, see our Coronavirus Financial Help & Rights guide.
How are mortgage lenders helping home-movers?
Last week, mortgage lenders announced that they would be offering mortgage payment holidays of up to three months to homeowners whose finances have been impacted by the coronavirus outbreak.
This latest offer of help was announced on Thursday by UK Finance, the mortgage lenders' trade association, and is designed to help home-movers who are on the verge of a move. It will apply to people who have exchanged contracts and agreed completion dates.
UK Finance said that lenders will be offering to extend mortgage terms by up to three months. You'll need to speak to your individual lender though to establish exactly what would work in practice, as this could mean:
- Keeping the terms of the existing mortgage offer and simply extending the offer expiry date.
- Pushing back the start date of a mortgage deal.
- Extending the mortgage deal to expire three months later.
UK Finance chief executive Stephen Jones said: "Lenders recognise that many people looking to move into their new home are facing significant stress and uncertainty due to the impacts of coronavirus. Current social distancing measures mean many house moves will need to be delayed.
"It is clearly not appropriate for people shielding or self-isolating to move home. Therefore, where chains contain people in these groups, lenders, conveyancers and other professionals are working together to enable these customers' moves to be delayed.
"Where people have already exchanged contracts for house purchases and set dates for completion, this is likely to be particularly stressful. To support these customers at this time, all mortgage lenders are working to find ways to enable customers who have exchanged contracts to extend their mortgage offer for up to three months to enable them to move at a later date.
"If a customer's circumstances change during this three-month period, or the terms of the house purchase change significantly and continuing with the mortgage would cause housebuyers to face financial hardship, lenders will work with customers to help them manage their finances as a matter of urgency."