Foundation praises landlords for ‘responsible’ use of payment holidays

  • 09/06/2020
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Foundation praises landlords for ‘responsible’ use of payment holidays
Foundation Home Loans has praised landlords for a “considered and responsible” use of mortgage payment deferrals during the coronavirus crisis.


CEO Hans Geberbauer (pictured) noted that there had not been widespread mis-use and landlords had taken breaks for genuine reasons.

He highlighted that guidance from mortgage advisers and industry bodies had been instrumental in ensuring the overwhelmingly responsible use of mortgage payment deferrals by landlords.

“When the initial government announcement was made about the availability of payment deferrals, there was considerable concern that landlords would request mortgage deferrals indiscriminately and potentially with a view to funding new investments, rather than using it to help tenants,” he said.

“While most lenders have experienced some egregious cases of misuse, our analysis shows that landlords should be widely commended for having taken both a considered and responsible approach to this issue over the past few months.

“We know that landlords have been helping tenants wherever possible, while using mortgage payment deferrals only where necessary,” he added.

The lender also noted that while landlords with short-term lets were unsurprisingly highly likely to need a deferral, it believed there was still opportunity in this market.

“As the lockdown eases but the opportunities for travel abroad may remain limited, short-term let landlords may well experience a resurgence in demand for their properties as Britons holiday in their own country,” it said.

Foundation said it had analysed its loan book and found portfolio landlords were no more likely to have taken a break than their non-portfolio counterparts.

And those who borrowed through a limited company vehicle were also less likely to have taken a payment holiday than those borrowing as individuals.

However, landlord borrowers with larger mortgages were more likely to take a break.



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