Homeowners could be denied coronavirus mortgage help if they have previously fallen into arrears

Homeowners left unable to pay their mortgage due to the coronavirus outbreak are meant to be offered a payment holiday by their bank – but details are uncertain and not all those affected will be covered.

The virus outbreak has left many people facing a loss in income, with some unable to work due to illness and many more likely to face a huge pay squeeze as the economy goes into shutdown and jobs are inevitably lost. Self-employed workers and those in low-income hospitality jobs are likely to be particularly hard-hit.

Earlier this week, Chancellor Rishi Sunak announced that all mortgage lenders will offer respite to homeowners who struggle to pay up.

Mr Sunak said the payment holidays will mean that “people will not have to pay a penny” for their mortgage while they deal with the financial turmoil caused by coronavirus. Once the holiday ends, customers will be required to pay the full total owed to the bank – probably by adding on months of extra payments at the end of their term.

However, unfortunate homeowners who have slipped into arrears are not automatically eligible for support.

A note issued by banking trade body UK Finance warned that only customers who are up-to-date with their mortgages aat the time they were hit by the crisis will get backing.

This means homeowners who fell into arrears before the outbreak and then suffered more problems could be denied help when they need it most.

Some banks may choose to go further than these guidelines and offer payment breaks to those who have recently fallen behind. However, in other cases, including one seen by this newspaper, customers have been denied financial help.

Meanwhile, tenants’ groups have complained that little is being done to help those in rented accommodation. The payment holiday has been extended to cover landlords, in the hope their cost savings can be passed on to struggling tenants.

A broader package of support for tenants will be announced by the Government in coming days. In the meantime, landlords have been banned from evicting those who cannot afford to pay.