If you are an individual Landlord and think you’ll struggle to make your monthly mortgage payments specifically because of Coronavirus, we can help you by offering a 3-month payment holiday.
What is a payment holiday?
A payment holiday allows a borrower to defer mortgage payments for an agreed period. It is important to remember that you still owe that money and the interest on your mortgage still accrues during a payment holiday. At the end of the payment holiday Fleet Mortgages will contact you to assess your circumstances and agree a repayment plan for the arrears accrued.
A payment holiday will be available to individual customers who are up to date on their mortgage payments, and who have lost income because of the impact of Covid-19. A copy of a Valid AST agreement will be requested in order to confirm that the property is being let in accordance with the terms and conditions of your mortgage.
Payment holiday requests from Limited Companies are not accepted.
Mortgages completed on or after the 19th March 2020 are not eligible for a payment holiday.
How do I apply:
If you are concerned about making your mortgage payments during this time you should contact us as soon as possible. You will need to self-certify that your income has been either directly or indirectly impacted by Covid-19. We will also need a declaration to confirm that your tenant’s income has been impacted by Covid-19. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during the Coronavirus crisis.
If you are a landlord, who owns four or more properties, we will require additional information to support your request for a payment holiday. You will be asked to complete our standard income and expenditure form, as well as providing a declaration from your tenant confirming that they have lost income as a result of COVID-19. The information you provide will allow us to process your request observing UK Finance guidelines, whilst also ensuring that Fleet Mortgages has the necessary information to consider whether a payment holiday is the most suitable option available to you.
Should I cancel my direct debit?
If a payment holiday is approved, no direct debits will be collected during the agreed period, accordingly, please do not cancel your direct debit.
Cancelling your direct debit prior to a payment holiday being approved, could count as a missed payment and adversely affect your credit rating. A missed payment will also affect your eligibility for a payment holiday.
When will the payment holiday take effect:
Where we can, we’ll start your payment holiday from your next payment. However, if your next payment is due in the next few days, your payment holiday may start the following month. We’ll confirm the details when we write to you confirming your payment holiday. We’ll aim to get back to you as soon as possible, but please allow up to 7 working days from the date you submit your payment holiday application.
During the payment holiday period:
You will not have to make any monthly mortgage payments for a set amount of time, in this case up to three months. Arrears fees will be waived during the payment holiday period.
After the payment holiday ends:
Toward the end of the payment holiday Fleet Mortgage Services will write to you confirming the amount accrued during the deferred period. It is in your interests to repay the deferred amount as soon as you can in order to minimise the interest you will pay. Our online calculator will help you understand how changes to your mortgage could affect your repayments.
If you are unable to repay the deferred amount in one lump sum, you can make an agreement to repay the amount owing over a set period. The amount owing will be split down into the number of agreed months and collected in addition of the normal monthly payment by direct debit. We recommend that you choose the shortest arrangement period you can afford from the option of 3, 6, 9 or 12-months.
If you are experiencing continued financial difficulties:
If you are experiencing financial difficulties that prevent you from recommencing your mortgage repayment and/or repaying the deferred amount owed, please contact us to discuss your situation as soon as possible. Further payment deferrals and/or capitalising deferred payments will be considered on a case by case basis and will be subject to assessment of your financial circumstances. To request a further payment deferral period, please complete and return the request form below.
To proceed, please download, complete and return the relevant PDF document below to: