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Mortgage lenders to give three month payment holidays, chancellor confirms

Paloma Kubiak
Written By:
Paloma Kubiak

The Chancellor announced mortgage lenders will provide customers with three months of payment holidays in a bid to support financial security amid the coronavirus pandemic.

Rishi Sunak said the government wants to support employment and protect incomes as part of the second daily briefing on coronavirus.

Those affected by the virus will be eligible for the three month mortgage payment holiday but further details about how it will work are expected in due course.

It forms part of a package of measures to build on those announced at Budget last week.

Sunak said the government will offer government backed and guaranteed loans to businesses worth £330bn – 15% of the UK’s GDP.

It will be through two main schemes – liquidity for larger firms via a lending facility at the Bank of England and for small and medium business, interruption loans with no interest due within the first six months.

Businesses in the hospitality, leisure and retail sectors (irrespective of rateable value) will be eligible to a business rate holiday of up to 12 months and an up to £25,000 cash grant.

For the 700,000 smallest businesses, they will be eligible for a £10,000 cash grant, up from the £3,000 announced at Budget last week.

Speaking in the Commons later, Sunak added that the housing minister will announce measures in the coming days to help renters impacted by coronavirus.