To help home movers impacted by Covid-19, mortgage providers will give customers who have exchanged contracts the option to extend their mortgage offer for up to three months to enable them to move at a later date
Stephen Jones, Chief Executive of UK Finance, said:
“Lenders recognise that many people looking to move into their new home are facing significant stress and uncertainty due to the impacts of corona-virus. Current social distancing measures mean many house moves will need to be delayed.
“It is clearly not appropriate for people shielding or self-isolating to move home. Therefore where chains contain people in these groups, lenders, conveyancers and other professionals are working together to enable these customers’ moves to be delayed.
“Where people have already exchanged contracts for house purchases and set dates for completion this is likely to be particularly stressful. To support these customers at this time, mortgage lenders are working to find ways to enable customers who have exchanged contracts to extend their mortgage offer for up to three months to enable them to move at a later date.
“If a customer’s circumstances change during this three month period or the terms of the house purchase change significantly and continuing with the mortgage would cause house buyers to face financial hardship, lenders will work with customers to help them manage their finances as a matter of urgency.”
Robin Fieth, Chief Executive of the Building Societies Association (BSA) said:
“Lenders and borrowers face an unprecedented set of circumstances. People who would have been preparing and expecting to move house in the coming weeks now face a wait until Covid-19 restrictions can be lifted. Our hearts go out to them and our heads are clear that it would be unfair for these people to have to start their mortgage application all over again once life returns to a more normal state. A three-month extension of existing mortgage offers seems a fair and reasonable step to take.
"It is possible that some borrowers financial circumstances may change during the three months. If this happens, or the terms of the purchase change we will work closely with the borrower to achieve a sensible outcome."
Notes to Editor
For more information please call Hilary McVitty at the BSA on Tel: 02075205926 firstname.lastname@example.org
or the UK Finance press office on 020 7416 6750 or email email@example.com
- UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.
- The BSA represents all 43 building societies and 6 of the larger credit unions, all mutuals owned by their customers.
- Mortgage providers have announced a series of measures to support homeowners and landlords who may be impacted by Coronavirus. Further details can be found here.
- Lenders will work to apply these measures to contracts that have been exchanged for house purchases, new-build purchases and buy-to-let purchases.
- Lenders are working to apply these measures to those transactions where contracts have been exchanged.
- Customers who have exchanged contracts and are concerned about their completion dates and the need to extend their mortgage offer should contact their solicitor in the first instance.
- Guidance for home movers from MHCLG can be found here