Santander has confirmed that extended payment solutions and stay on repossession activity will be available for all buy-to-let customers as well as residential mortgage customers.
A mortgage payment holiday can help landlords support tenants who may have been impacted by Covid-19, but landlords are being encouraged to think twice before requesting to defer mortgage payments.
Santander is currently contacting all customers coming to the end of their repayment holiday to provide a range of options that can be tailored to suit their current situation.
In line with the guidance from the FCA, the bank will be offering extended support for customers on mortgage payment holidays for customers until 31 October 2020. It has also committed not to carry out any repossession activity before 31 October 2020. These measures will cover buy-to-let mortgage customers as well as residential mortgage customers.
Brad Fordham, head of mortgages at Santander, said: “We are contacting customers so we can make sure that going forward they know the options available and the impact of the decisions they make around their mortgage.
“If people can pay anything towards their mortgage it’s better than nothing, which is why we are offering a reduced payment plan as well as an online tool to review income and expenditure.”
To support customers who feel they may now be in a position to start paying a portion of their monthly mortgage, Santander has introduced reduced monthly payment plans and an online mortgage budget planner for people to assess their income and expenditure.
For those who may be returning to a more stable financial position, there is also the option to overpay from £10 per month to start reducing the impact of a payment holiday.
Santander is also allowing customers currently on a payment holiday to apply to transfer to a new mortgage deal four months ahead of the end of their existing term with no penalties, enabling them to cut costs if they move to a lower rate.
Customers who have not previously had a mortgage payment holiday will continue to be able to apply for one online or by phone up until 31 October 2020.
Fordham added: “There will be many customers who now feel comfortable returning to their regular payments and some may even want to take advantage of on-line overpayments to start reducing the impact of their payment holiday.
“It’s important that people do the best thing for their own particular circumstances both now and in the longer term.”
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