Chancellor Rishi Sunak (pictured) made the announcement during the government’s second daily update on the coronavirus.
Sunak said: “People will not have to pay a penny towards their mortgage cost while they get back on their feet”.
He added he would announce further measures in the coming days to help support people’s financial security.
This news comes as a number of lenders confirmed they will relax on rules to help borrowers who are unable to make mortgage repayments due to the pandemic.
Lloyds Banking Group and NatWest were the latest banks to announce support for mortgage customers, with both saying borrowers would not have a black mark on their credit history if they missed payments due to the virus.
Nationwide has added it’s name to this list.
The support for landlords and tenants through this measure is not yet clear.
More details about how this will work exactly are expected shortly.
Commenting on the statement, UK Finance CEO Stephen Jones said: “Mortgage lenders will support customers who are experiencing issues with their finances as a result of Covid-19 and the options include a payment holiday of up to three months.
“Monthly mortgage payments tend to be the largest outgoing for the vast majority of households and lenders are keen to reassure homeowners that the industry is working hard to put measures in place to support them during these uncertain times.
“Customers who are concerned about their current financial situation should get in touch with their lender at the earliest possible opportunity to discuss if this is a suitable option for them.”
