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A state-backed scheme to help homeowners struggling to pay their mortgages that gives a payment holiday of up to two years should be extended to buy-to-let investors. Issuing the call, the National Landlords Association said it was nonsensical landlords were exempt from the scheme if its real aim was to stop people from losing their homes. Under the measures, announced by Gordon Brown, households which suffer a “significant and temporary loss of income” due to the downturn can qualify. Other details of the Homeowner Mortgage Support Scheme add that households mortgaged for up to £400,000 can defer a proportion of their interest payments for up to two years. "By giving buy-to-let landlords the same breathing space,” the NLA said , “it would give them a chance to offer any struggling tenants a similar period of time to get their finances in order”. This would potentially “prevent the home being repossessed” and could avoid lenders having to evict tenants, argued Simon Gordon, head of communications at the association. He added: “For the more highly-geared and smaller landlord, whose monthly mortgage payments rely heavily on monthly rental income, tenants not paying can quickly spell disaster.” Confirming the pressures, buy-to-let arrears last week became higher than owner-occupier arrears for the first time since the Council of Mortgage Lenders’ records began, as feared. Reflecting on the figures, the NLA said the HMSS should apply to buy-to-let properties, given the council found that 71 per cent of landlords said arrears would be a “major” issue in 2009. The government has agreed to underwrite the £1billion scheme, details of which are being drawn up, which has been agreed with Britain’s eight largest mortgage lenders. Dec 5, 2008 Email this article Printer friendly page Previous Page
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