This is an interest free loan for private and social housing tenants that is intended to help those that have been impacted financially by the COVID 19 pandemic.

Eligibility

• You must be a social or private tenant.
• You must be able to demonstrate that you can pay back the loan. This will involve making a monthly budget.
• You must investigate and apply for other support if it is available.
• You must have details of your rent and rent arrears.
• Your landlord must not be using the eviction procedure against you. They must agree to stop in order for you to be eligible.

What can be borrowed under this fund?
You can borrow up to the equivalent of 9 months rental arrears. Up to 3 months of this limit can be used for future rent payments instead (e.g. 6 months of arrears and 3 months of future rent).
There will be no interest on this loan.
The first payment is deferred by 6 months and there is no time limit on repayment.

Application Process
You can apply through this Scottish Government link The Tenant Hardship Loan – Home page (est.org.uk)
The application process will require a credit check and examination of your finances.

Alternatives to this loan
It is important to note that this loan must be paid back. As such, it is not advisable to take the loan if repaying it will incur further financial difficulties.
Other benefits such as Universal Credit should be investigated as options. The Advice.scot Benefit Calculator can be used to calculate what UK, Scottish or Local Authority benefits you can claim.

When a homeowner has arrears on their mortgage, the lender will usually want these to be cleared. If these arrears are not cleared, then the mortgage lender may initiate the process for repossession of the property to sell it in order to recoup their investment.

Many lenders are sympathetic in circumstances where there has been a loss of income due to factors out-with the control of the homeowner. Most financial institutions realise that it is better to negotiate with those who have fallen behind in order to get things back on track.

End of Mortgage holidays

From the 1^st of July, the mortgage holidays arranged by the Financial Conduct Authority ended. The holiday prevented banks and other lenders from demanding repayments.

What can be done if I am struggling with my mortgage?
-Negotiate with the lender to pay a lower amount for a certain period of time.

-Switch to an interest only mortgage for a certain period of time.

-You could extend your mortgage holiday.

Communicate and negotiate with the lender

The first step is to communicate and negotiate with the lender. By discussing your issue with them frankly, particularly if you have been impacted by the repercussions of the coronavirus, you may be able to come to a reasonable agreement.
If the situation has gone beyond this, lenders are required to demonstrate that they have made reasonable efforts to deal with the arrears without resorting to using the courts to enforce repossession of the property. This includes –

• Providing clear information about the arrears
• Taking reasonable effort to agree a repayment proposal with the homeowner
• Allowing enough time to pay off the arrears before going down the route of repossession.
• Providing information about sources of further information and advice.

Communicate and negotiate again

If an existing arrangement has been made to pay outstanding mortgage arrears, and this has broken down, don’t bury your head in the sand. You can still negotiate further with the lender. There may still be time to come up with an amicable solution for both parties.

If the lender takes you to court

Remember that going to court does not necessarily mean that you will lose your home. You should ensure that your lender has communicated with you effectively and taken reasonable steps to resolve the issues before going to court.

If the issue reaches this stage, and the lender is taking you to court, then you should try to obtain legal advice from a solicitor qualified to represent you.

You can search for specialist legal advice on the Law Society of Scotland website by visiting their website. 

Remember:

Step 1:
Negotiate with the mortgage lender to check what can be done to get back on track.

Step 2:
Understand your rights and the lender’s responsibilities in helping you to get back on track.

Step 3:
Negotiate with the lender again if you need to. Remember that there may still be a way forward if you have failed to stick to a payment plan before.

Step 4:
Seek specialist legal advice if the lender intends to take you to court

Restrictions on moving home have bee lifted across Scotland. This means that you can visit estate agents, visit homes you to view for purchase/rent, enter and prepare a property for you moving in and move into your new property. However, health and safety precautions must be made to limit the spread of COVID 19. 

Some students renting privately can end tenancies early by supplying their landlord with 28 days’ notice under the Private Housing (Tenancies) (Scotland) Act 2016.

However, students living in Purpose Built Student Accommodation (PBSA) cannot do so as this is not covered by the provisions set out in the Act.

These tenancies have been let to a student tenant whilst undertaking a course of study. With courses no longer being provided by further learning institutions in the ordinary way, the purposes of these tenancies can no longer be fulfilled.

What legislation is in place to help students deal with termination of tenancy agreements?

The Coronavirus (Scotland) (No.2) Bill (SP Bill 71) introduced by the Scottish Parliament on the 11^th May 2020, sets out guidelines for students finding themselves in this position, allowing:

• A 7-day notice period for those currently tied into a student accommodation contract
• A 28-day notice to leave period for agreements entered whilst the provisions are in force.

7-day Notice Period – Those tied to student accommodation entered into prior to provisions being in force

Ensures students who have left their PBSA or have been unable to return to it, and who wish to end their contract early are able to do so when this has been caused by the coronavirus outbreak.

28-Day Notice Period – Those who have agreements entered whilst the provisions are in force

This offers reassurance to students seeking accommodation for the next academic year. If uncertainty regarding the ongoing operations of universities continues, an appropriate notice period will be in place.

Why is this legislation important?

Some students who are no longer residing in their PBSA are required to continue to pay for accommodation that they are not using.

Further learning institutions are unable to provide students with academic instruction that involves physical attendance. Government guidance has been that students should return home, and many have already complied with this guidance. To return to the let property without reasonable excuse would be a criminal offence.

How do I submit notice to end a tenancy?

You are required to give the landlord the required notice in writing if you are looking to end the tenancy.

The notice period begins on the day that the landlord receives the notice and ends either 7 or 28 days after that date (depending on the type of tenancy – outlined above).

If you send the notice by post or email, you should allow the landlord 48 hours to receive it, and this time should be added on to the amount of notice given to the landlord.

What if I cannot give the required notice?

Any alterations to notice (e.g. if you want to end it sooner), should be agreed with the landlord in writing.