The Association of Short Term Lender (ASTL) has said that it is still awaiting full details of the guidelines which the government is set to give to lenders.
In response the association has advised borrowers on short-term facilities to discuss options with their lenders until more detailed guidance is issued.
A spokesperson for the ASTL said: “At this stage we are still awaiting full details regarding the guidelines which government will provide for lenders.
“We sympathise with those customers who may be financially affected but there are a couple of points to bear in mind at this early stage:
- “On bridging mortgages the customer does not normally have to commit to making monthly payments. In this case they might talk to the lender about extending the facility in the event that the deal cannot be repaid within the initially agreed timescale.
- “Lenders will take their own counsel in talks with government and advise their clients how they will exercise any deferment directly and if necessary.
“At this point we have not asked our lenders what their intentions are as we all need to await more detailed information on how this will be dealt with on a case-by-case basis.”
Yesterday Chancellor Rishi Sunak confirmed that mortgage lenders would be offering three-month mortgage repayment holidays to those affected by the coronavirus outbreak.