Measures announced for new homeowners

The Government and UK Finance, the mortgage lenders’ trade association, have announced new measures to support homeowners through the coronavirus outbreak. Recognising the stress and uncertainty facing new homebuyers, mortgage lenders are now offering mortgage extensions for up to three months.

The move is designed to help people who were due to move into their new home but now may not be able to due to the outbreak. Extensions are available to those who have already exchanged contracts and agreed on a completion date, allowing the completion to take place at a later date.

The mortgage extension will usually keep the terms of an existing mortgage offer but:

• Extend the offer expiry date
• Push back the start date of a mortgage deal, or
• Extend the mortgage deal to expire three months later.

Terms may vary by individual lender.

These new steps will help home movers stick to social-distancing guidelines by relaxing the timelines and helping to push back move-in dates without penalties.

Money Saving Expert and Homeowners Alliance have resources to understand what a mortgage extension means and the help available from different lenders. You can also contact your mortgage lender directly to discuss what options work best for you and your household.