COVID-19: Advice for Landlords

If you have a mortgage on your property then lenders are offering 3 Months holiday payment with the government looking to push this to 6 Months. If you are currently up to date with your mortgage payments, you or your family are affected by Covid-19 and you’re struggling to pay your mortgage, then a payment holiday or other appropriate option will be made available to you.

A payment holiday is a way to defer your monthly instalment, but it will still be payable in the future and your account will still accrue interest, which means a three-month payment holiday may not be the best option for everyone. If an agreement is in place with your lender and you find you can then afford to make a part payment, you should consider doing this as it will reduce the amount of interest that accrues and the overall amount outstanding at the end of the agreed period of payment deferment.

Ask your lender how the deferred payments will have to be paid back, a couple of option being:

  • adding the deferred instalment(s) to your outstanding mortgage balance (capitalising the amount), so you can pay it over the remaining term of your mortgage, or
  • agreeing to a short-term payment arrangement to clear the deferred instalment(s) over several months.

If you are currently up to date with your mortgage payments and a payment holiday has been agreed with you due to the Covid-19 virus, then your credit record should not be negatively impacted but ensure to get clarification from your individual lender. Payment holidays are being provided on the understanding that this relief/deferent will be passed on to your impacted tenants.

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Shona is focused and driven and extremely professional.
Clare Darwish, Landlord

Member of Landlord Accreditation Scotland Member of Council of Letting Agents