How to deal with Mortgages and Rent payments During Coronavirus Pandemic

Written by Louis Posted On Monday, 27 April 2020 10:13

People around the world are worried that they will struggle of paying off the mortgage instalment or their house rent (the one living in rented property) during the coronavirus pandemic. It has become a nationwide issue and a lot of them are looking for help in this regards. For some, the mortgage lenders have either reduced the rate or interest or put a hold on the collection. For those who are renting some of the landlords have followed the same process than mortgage landers, but not all the landlords has done the same.

The Government has also take action and put some measures into place for financial regulators as well as of the biggest banks in UK to help those facing financial difficulties. A lot of companies are offering credit card or loan payment holidays as well as interest freezes on overdrafts for the coming months. This could be something that you as a potential victim to the financial crisis might look into. Or another alternative is that you may decide to take out a low interest loan. A lot of companies who offer such help have drastically lowered the interest on loans so that families can keep themselves on top of their bills and keep food on the table. One place to look for more financial help would be Asteria who offer a range of loan products.

Not all landlords are being so kind however, some are still pressuring tenants with the possibility of eviction. However, this type of scare tactic is not appropriate, and action can be taken place for those that are experiencing this. The government have already issued protection for those at risk. The coronavirus outbreak has put a lot of people out of work. Unless you are a keyworker, you must not travel to work. Instead you can work from home, or not work at all. If you are not working at all then your companies are allowed to furlough you, which means that you will only receive up to 80% of your monthly wage. Again, this isn’t beneficial for those struggling as it is with financial issues. However, with the help of these new schemes in place to help those in need of some support, 80% of your wage shouldn’t be too much of a deficit when you don’t have to pay mortgage or loan bills.

So, what happens after all this is over? Well there is likely to be a huge recession which will be a huge issue for the UK economy. It is likely that people will face a lot more financial trouble and could potentially struggle to continue paying their bills. This might lead a lot of people to sell their homes and find something a bit more affordable. Or those already wanting to sell up may now have to sell for even cheaper in order to find a buyer. Which if you are lucky enough to not be effected financially by the pandemic and are looking to buy a home, now would be your perfect opportunity as the prices are lowered and mortgage payments wont be as high as they could have been.

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