Coronavirus: what does this mean for your mortgage, rent and living expenses?

Many families face a cash crisis as their incomes dry up. Can homeowners postpone paying their bills until the crisis is over?

The coronavirus outbreak has caused many people to experience a significant loss of income. Some cannot work because of illness, but many others will struggle to maintain their current income because the economy is no longer functioning properly.

Self-employed and low-income people will suffer the most because the government has advised citizens to stay home and avoid public places where possible.

The Government has now announced that all homeowners will be able to claim a three-month break in mortgage repayment if they are unable to pay their mortgage due to the coronavirus.

How will this affect those who are unable to pay their living expenses?

Banks, including NatWest and Lloyds, were among the first to respond to the crisis and offered a 'weekend' for mortgage clients who are unable to pay their monthly fees.

Chancellor Rishi Sunak has announced that all mortgage lenders will give homeowners who are struggling to pay a break. Sunak-san said that a mortgage holiday would mean that "people won't have to pay a penny" for a mortgage while they deal with financial turmoil caused by the coronavirus.

It will be up to the banks to decide whether clients are eligible for mortgage leave. However, those banks that have already offered mortgage leave have allowed both to apply for deferral, who are infected with the virus and those who are healthy but have suffered income losses.

What about tenants?

There is growing concern about tenants who are experiencing financial difficulties. Currently, tenants are not allowed to take a break in rent.

One of Acorn's campaign groups has already called on the government to better support tenants. Experts argue that tenants are disproportionately more likely to work under short-term employment contracts, which may be terminated due to the crisis.

Mortgage holidays have also been extended to the landlords, which means that they can help the tenants that the landlords will not have to pay monthly buy-to-let debts to the banks.

The Government has also stated that no tenants can be evicted from their homes during the crisis and that it will soon launch a programme to provide more direct assistance to tenants.

Can I get help on energy bills?

The Government has agreed with the energy industry on new measures to support the "vulnerable" because of the Covid-19 outbreak.  The rules will ensure that all vulnerable consumers are not disconnected from the energy supply.

The four million people who have pre-payment meters or pay-as-you-go accounts can also talk to their supplier to ensure that their supply is not interrupted and maintenance continues.

Also, all households that are under financial stress can apply to their electricity supplier for financial support. This may include suspension of payments on existing debts. No customer will be disconnected during the flash.

What about other household accounts?

It has been announced that £500 million will be offered to local management (Social Security) to provide financial support to economically vulnerable individuals and households. It is expected that most of this money will be used to provide local management with tax incentives for those who were unable to pay during the coronavirus outbreak.

However, there is unlikely to be much freedom in paying some bills. For example, Sky Sports and BT Sport have said that fans cannot cancel a TV subscription even though the vast majority of sports events have been cancelled or postponed.

Is it possible to get help from the government?

Those who have lost income can apply to the government for benefits, but will face a disappointing five-week wait before any financial help arrives. Various support campaigns are calling for this measure to be cancelled or reduced in order to help those in need.

According to Mark Montaldo of CEL Solicitors, more support is needed, especially for homeowners who have lost income because of the outbreak and are struggling to lose their homes. "There is no doubt that the government has an extremely difficult situation and the main challenge is to fight the outbreak and reduce its spread. But we also need to consider who will be most affected by the epidemic and how to support those people. We cannot let people feel that they cannot isolate themselves to protect themselves - and others - for fear of losing their income and thus potentially losing their homes," he said.