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 coronavirus. 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,
all 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."
