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Monday, August 17, 2020

Shock horror – mortgage holidays bite back

The option of arranging a mortgage holiday on buy-to-let properties during the pandemic was a supportive measure introduced by the government and buy-to-let lenders. The possibility of deferring up to 6 months’ payments was meant to help landlords if their tenants were struggling to pay rent due to the impact of Covid-19.

andlords were reassured that arranging a mortgage holiday would not negatively affect their credit score, leading most to believe that it would not impact on their ability to obtain further finance on their buy-to-let investments. 

However, many landlords have since found out that taking out a mortgage holiday has made getting a new buy-to-let mortgage more difficult. Jane Simpson at Property Hawk Mortgages says:

Although applying for a mortgage holiday will not affect a customer’s credit file, lenders may reasonably ask why it was needed. As they assess the risk of lending to an applicant, lenders will want reassurance that there aren’t any existing financial issues with the property, portfolio or business in question.

Lenders may not take such a lenient view of applicants who have applied for a buy-to-let mortgage holiday during the crisis as this could be interpreted as demonstrating underlying cash flow issues with management of the property.
This may make it more complicated for those who have taken a mortgage holiday when they seek further finance.”


This seems a harsh state of affairs for landlords who applied for a mortgage holiday in good faith to protect their buy-to-let investments and under the impression that it would not harm their business.


To discuss your options with a buy-to-let mortgage expert, please call our support team and we will be happy to help you.


CALL NOW ON 029 2069 5446

Property Hawk Mortgages is here to help you make sense of all your buy-to-let mortgage options and to offer our experience and expertise to support you in finding the right product to meet your needs.

Use our free online mortgage search tool at Property Hawk Mortgages
Call us now on 029 2069 5446


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