The online broker wants lenders to take an understanding approach when dealing with customers struggling to pay their mortgages due to the outbreak.
Property Master, an online buy-to-let mortgage broker, is calling on lenders to support landlords and tenants amidst the Coronavirus pandemic.
The online broker wants lenders to take an understanding approach when dealing with customers struggling to pay their mortgages due to the outbreak.
It also wants to see lenders being sympathetic with landlords who may face loan repayment problems as tenants default on rents.
Property Master advises that individuals should keep communication channels open with their tenants and/or letting agency, make contact as soon as possible with lenders if it does look as if you will struggle to meet a mortgage repayment, and to look now at your mortgage costs.
Due to self- isolation, many portfolio landlords are concerned about their property businesses.
Matthew Lauchlan, a portfolio landlord with 30 years experience who owns properties across the UK, including holiday lets in the UK and overseas, said: “Holiday bookings have really dropped off at the moment as people put any travel and vacation plans on hold.
“But, what I am even more worried about is that I am now being contacted by tenants who for one reason or another as a result of the Coronavirus are not being paid.
“They are letting me know that this means they’re going to struggle to pay the rent. If that happens on any kind of scale it could have a knock-on effect on my mortgage repayments.
"Being a larger landlord will help me spread the risk but that will not be so easy for small landlords with just one or two properties.
“I plan to talk to my lenders as soon as possible so they are up to speed with what I am seeing. I am hoping they can work with me to find some sort of long-term solution as no-one knows how long this situation will continue.”
Angus Stewart, chief executive at Property Master, added: “We are already hearing from landlords who have tenants saying they will be late with rent payments or who may not be able to pay their rent at all.
“There are reports of tenants whose working hours have been reduced or who work for overseas companies that do not appear to be currently trading.
“In addition, given current medical advice to stay at home if you are exhibiting possible Coronavirus symptoms, we would expect more tenants to find themselves in difficult financial circumstances.”
