Bennison Brown | How The Government Is Helping You Pay Your Mortgage

How The Government Is Helping You Pay Your Mortgage

The economic effects of the Coronavirus

"We have never in peacetime faced an economic fight like this one" - Rishi Sunak, Chancellor of the exchequer.

The Coronavirus has already caused quite a lot of economic turmoil, with one of the steepest stock market declines since the 2008 financial crisis.

Economic uncertainty tends to lead to both businesses and consumers playing it safe. Preparing for the worst, the public will be expected to save money for the case of illness or redundancy. Similarly, businesses affected by this reduced demand and productivity may have to make redundancies in order to survive financially.

During this time, becoming ill or redundant can jeopardise your ability to keep up with mortgage repayments. Fortunately, the government is making a strong effort to help those affected.

What is happening to help people with mortgage repayments?

In order to help homeowners:

  • The new Chancellor of the exchequer has assured that those suffering from the financial repercussions of the Coronavirus outbreak will receive a 3 month pause in mortgage payments. Unfortunately, this does not apply to landlords.

In order to keep jobs:

  • They have pledged at least £330bn in loans (this figure may rise).
  • The governor of the Bank of England has encouraged businesses not to make redundancies, but to speak to the government about other solutions.

What should you do next?

Hopefully the current changes make it easier to repay your mortgage, however if you are worried about your ability to repay, we encourage you to get in contact with your lender in order to see what they can offer you specifically.

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