UK lenders offer mortgage extensions as banks and customers grapple with coronavirus disruptions
The policy will help people whose moving plans have been disrupted by a loss of work as well as self-isolation policies and social distancing recommendations.
It could also alleviate pressure on banks. The capacity of lenders is being stretched at a time when they are facing internal operational headaches, splitting workforces between headquarters in central London, backup sites miles outside the city and home offices.
“It is clearly not appropriate for people shielding or self-isolating to move home,” Chief Executive of UK Finance Stephen Jones said in a statement. “Therefore where chains contain people in these groups, lenders, conveyancers and other professionals are working together to enable these customers’ moves to be delayed.”
“People who would have been preparing and expecting to move house in the coming weeks now face a wait until Covid-19 restrictions can be lifted… Our heads are clear that it would be unfair for these people to have to start their mortgage application all over again once life returns to a more normal state,” Robin Fieth, chief executive of the Building Societies Association, said in a statement.
Lloyds Banking Group said Thursday it is adjusting some product offerings to manage the situation. It has temporarily withdrawn new mortgage and remortgage products with loan to value ratios of over 60% available via its intermediary brands. Customers can still apply for a mortgage directly online with Halifax and Lloyds Bank.