LENDERS TO GIVE THREE-MONTH MORTGAGE EXTENSION FOR HOME MOVERS IMPACTED BY COVID-19

Mortgage providers will give customers who have exchanged contracts the option to extend their mortgage offer for up to three months to allow them to move at a later date (The Times, p1, £).

The government issued official guidance telling people in the early stages of buying or selling their home to delay the transaction while emergency measures are in place (The Telegraph, B1, £, Daily Mail, p1). The housing market had already shown signs of stagnating as property demand fell 40 per cent last week compared to the previous week, according to Zoopla.

Stephen Jones, Chief Executive of UK Finance, said:

?Lenders recognise that many people looking to move into their new home are facing significant stress and uncertainty due to the impacts of coronavirus. Current social distancing measures mean many house moves will need to be delayed.

?It is clearly not appropriate for people shielding or self-isolating to move home. Therefore where chains contain people in these groups, lenders, conveyancers and other professionals are working together to enable these customers? moves to be delayed.

?Where people have already exchanged contracts for house purchases and set dates for completion this is likely to be particularly stressful. To support these customers at this time, all mortgage lenders are working to find ways to enable customers who have exchanged contracts to extend their mortgage offer for up to three months to enable them to move at a later date.

?If a customer's circumstances change during this three month period or the terms of the house purchase change significantly and continuing with the mortgage would cause house buyers to face financial hardship, lenders will work with customers to help them manage their finances as a matter of urgency.?.

RISHI SUNAK ANNOUNCES PACKAGE FOR SELF-EMPLOYED WORKERS

The chancellor Rishi Sunak has announced a £9 billion package for nearly four million self-employed workers affected by the coronavirus (Daily Mail p6, The i, p1, Sky News).

The Guardian (p6) reports that those claiming help must wait until June to get 80 per cent of their earnings covered by the state, up to a maximum of £2,500 for three months.

According to The Telegraph (B2, £), the chancellor signalled a tax rise when the coronavirus crisis is over. He said: ?If we all want to benefit equally from state support, we must all pay in equally in future.?.

NEWS IN BRIEF

The Bank of England (BoE) warns of long-term economic harm as the coronavirus forces businesses to close and reduces consumer spending (The Guardian, p29).

Companies and auditors have been told to adopt new approaches to providing information to investors during the coronavirus outbreak as concerns rise over the quality of corporate reporting and market reactions (Financial Times, p3, £).

The national debt is set to be higher next year than levels during the financial crisis, according to new estimates by the Institute for Fiscal Studies (IFS) (The Times, p7, £).

The government and the BoE have extended the new lending scheme to large and medium-sized firms who do not have a credit rating (The Telegraph, B1, £).

WHAT THE COMMENTATORS SAY

Oliver Kamm, leader writer and columnist at The Times (p41, £) writes that unconventional monetary policies have been practiced by central banks ever since the financial crisis, yet hyperinflation hasn't happened. Mr Kamm says inflationary pressures have been subdued and with the global pandemic, they will be weaker still. Mr Kamm says the best policy, faced with higher inflation, will be to accommodate it rather than seek to defeat it, preferably by explicitly raising the inflation target. He says inflation of five to ten per cent will also make it easier to deal with the widening of the budget deficit. Mr Kamm predicts that gradually nominal interest rates will rise and equities will do better in this environment. He says while this is far from ideal, it will help the economy to recover.

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