Coronavirus and your home (Scotland)
Help with your mortgage
The FCA has issued several pieces of guidance for requesting a payment holiday if you are affected by coronavirus and struggling to pay your mortgage. The most recent guidance includes the following support.
- If you have been affected by coronavirus and have not yet had a mortgage payment holiday, you will be entitled to a six-month payment holiday in total. (Although your lender can only agree a three-month payment holiday at a time).
- If you’ve had a payment holiday previously or are currently on a payment holiday, you will be able to extend up to a total of six months.
You have until 31 March 2021 to ask your mortgage lender for a payment holiday. After this date, you may also be able to extend your existing payment holiday up to 31 July 2021. However, you cannot go over the six-month limit that the FCA guidance allows.
The payment holiday will not be recorded on your credit file; however potential lenders may still be able to find out that you didn’t make these payments as originally agreed in other ways, for example, by looking at your bank statements.
If you’ve already had six months of payment holidays and you are still unable to afford the payments, contact your lender as soon as possible. Discuss your situation and ask what forbearance options are available. Ask your lender how this will affect your credit file.
The FCA also announced that no repossession action should be taken by lenders until 1 April 2021.
The Government has also introduced temporary rules that mean no eviction action should be taken if you live in a Tier 3 and 4 area until 1 April 2021.
If you have received possession claim forms, are being threatened with court action or need extra support, contact:
- Shelter Scotland on 0808 800 4444.
Information is also available on their website.
Help with your rent
The Housing and Property Chamber has rescheduled hearings that had previously been postponed due to coronavirus. If you had a case that had been postponed, you will be notified when you should attend the Tribunal.
All mandatory grounds for eviction have become discretionary. This means that the tribunal can decide not to evict you if they wish.
The Government has introduced temporary rules that mean, in most cases evictions will not be carried out by sheriff officers between 11 December 2020 and 22 January 2021. This ban will continue for Tier 3 and 4 areas until 31 March 2021. There are some exceptions, such as where the eviction was granted due to anti-social or criminal behaviour.
If you are contacted by a sheriff officer who is threatening eviction, contact Shelter Scotland for help.
The Government has also passed a temporary law to protect tenants in Scotland during coronavirus. In most cases, your landlord will now need to give you six months' notice before they can start legal action to evict you. Theses new rules will be in place until at least 31 March 2021. There are some exceptions, such as where a landlord is ending the tenancy due to antisocial and criminal behaviour, or because the landlord or their family need to move into the property. More information can be found at Shelter Scotland.
If you are a private tenant, new rules also came into force on 1 October 2020 which cover the process a landlord should follow if they are considering repossession action against you.
- Your landlord should provide you with clear information relating to the terms of the tenancy, the amount of arrears and your rights in relation to the repossession proceedings.
- Your landlord should try to agree a reasonable plan to with you. They should consider affordability, taking into account your personal and financial circumstances.
- You should be allowed time to consider and seek advice on any proposed payment plan.
- A full list of the pre-action requirements that your landlord now needs to follow can be found on the GOV.SCOT website.
To help with negotiations, SafeDeposits Scotland has a free resolution service. Either you or your landlord can approach them. Their aim is to try and stop tenants being evicted.
The Scottish Government have produced a private rented sector (PRS) tenant resource which has detailed information on dealing with rent arrears during the coronavirus pandemic.
If your landlord is unhelpful and you need more support, contact Shelter Scotland on 0808 800 4444.
If you claim Housing Benefit or Universal Credit with help towards housing costs, you may be able to claim a Discretionary Housing Payment. A Discretionary Housing Payment can give you extra money to pay towards your rent. You should be able to claim online. Check with your local council.
The Tenant Hardship Loan Fund
The Scottish Government fund offers interest-free loans to private and social sector tenants who are struggling to pay their rent because of the impact of coronavirus.
The fund can be used to cover up to a maximum of nine months of your rent costs. This can include:
- rent arrears that have built up since 1 January 2020; and
- up to three months future rent payments.
For more information and a link to the online application form, see GOV.SCOT.