COVID-19 update
In light of the exceptional circumstances of COVID-19, on 18 March 2020 the UK Government introduced emergency legislation to protect homeowners, renters and landlords affected by coronavirus. This has been termed the Coronavirus Act 2020.
What has the government announced?
Coronavirus Act 2020
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All court action for repossession was initially suspended for 90 days from 27 March 2020, therefore until 25 June 2020.
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The suspension has since been extended to 11 January 2021, except in the most serious circumstances.
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Lenders and firms should not commence or continue any repossession proceedings against residential or buy-to-let customers at this time.
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That means your lender can't go to court to evict you during that time. Any court action that had already started is to be put on hold.
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Mortgage lenders will also allow a payment holiday for those struggling to cover their mortgage because of coronavirus. Some lenders have introduced additional support, such as no fees for late payments or switching customers to a lower interest rate.
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As a result of these measures no one in private or social accommodation needs to be concerned about the threat of eviction or repossession.
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This situation is being kept under regular review by the Government.
This is incredibly positive news and provides much needed relief for homeowners, renters and landlords who have been impacted by the coronavirus. Furthermore, Government policy is evolving on a daily basis and this mortgage payment moratorium may be extended further still, as the coronavirus crisis continues. For the full press release, please click here.
If you have any queries related to repossession or financial difficulties despite the Government's announcement, we are still here to support you during this period - please feel free to get in touch.