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Mortgage holders experiencing financial difficulty because of the coronavirus will be offered a three-month mortgage holiday.

The proposal was unveiled by Prime Minister Boris Johnson and Chancellor Rishi Sunak as part of the UK's 'war' against the pandemic.

Mr Sunak also promised support packages for airlines and airports in trouble as part of a £330bn offered in government-backed loans.

The Chancellor said: “For those in difficulty due to coronavirus, mortgage lenders will now offer a three month mortgage holiday so people will not have to pay a penny towards their mortgage costs while they get back on their feet.”

Mr Sunak said of the size of the economy-wide package "means any business who needs access to cash to pay their rent, salaries, suppliers, or purchase stock will be able to access a government loan on credit on attractive terms.”

(Image: PA)

He added: "If demand is greater than that, he said, he will go further and “provide as much capacity as required”.

Banks has unveiled measures to help home-owners struggling to pay their mortgages but Mr Sunak had said the industry would go further.

He said: "We have had extensive discussions with the banks, who understand the situation that people are in and will, they have assured me, provide flexibility to those people in those circumstances, and understanding."

The Treasury has said mortgage lenders have agreed they will support customers that are experiencing issues with their finances as a result of Covid-19, including through payment holidays of up to 3 months.

What are the symptoms of coronavirus? The most common symptoms of the coronavirus are: a dry, persistent cough

a fever If you experience these symptoms, you should immediately self-isolate yourself for seven days. It is not necessary to call NHS 111 unless your symptoms get more severe. Some patients have reported fatigue, headaches, shortness of breath and aches and pains. Sneezing is not a symptom of the coronavirus.

This will give people the necessary time to recover and ensure they do not have to pay a penny towards their mortgage in the interim.

As part of the wider plan, pubs, clubs, theatres and and other retail, leisure and hospitality businesses will get support in the form of government-backed loans, cash grants and business rates holidays, the Chancellor said.

He added that more announcements would be unveiled in coming days as cabinet ministers meet with industry leaders and trade unions.

He announced a raft of measures aimed at helping businesses with cash-flow and meeting salaries.

(Image: Getty Images/Cultura RF)

Mr Sunak added: "This is not a time for ideology and orthodoxy, this is a time to be bold, a time for courage.

"I want to reassure every British citizen this Government will give you all the tools you need to get through this."

Mr Sunak described the outbreak as an "emergency", adding: "Never in peacetime have we faced an economic fight like this one."

Mr Sunak said that measures would be announced in the "coming days" to help protect people who rent.

He said: "The biggest fixed costs that many families face will be their rent payment and it is right that we have regard to that.

"What I can tell him (Mr McDonnell) is that the Housing Secretary (Robert Jenrick) will in the comings days be making a statement with further measures to protect renters through these difficult times."

People who take a three-month mortgage holiday shouldn’t see their credit rating affected, the Business Secretary said.

Alok Sharma told Sky News: “The FCA has talked to banks and lenders about this issue, particularly those who may need to delay payments on credit card bills etc.

“And I think the advice that’s gone out is any changes need to be properly documented and it shouldn’t affect your credit score.”

As part of the wider package £330bn of loans will be provided in two ways, the Chancellor said.

When should you call NHS 111? Those experiencing coronavirus symptoms, such as a cough or fever, should self-isolate for seven days. You should stay at home if you or or anyone in your household has a high temperature or a new and continuous cough - even if it's mild. Everyone in your household must stay at home for 14 days and keep away from others as it can take 14 days for them to appear.

DO NOT go to your GP or hospital.

Go to NHS.UK to check your symptoms and follow the specialist medical advice.

Only call 111 if you can't get online, you feel like you can't cope at home, or your symptoms do not get better after the seven days.

If you are pregnant you should call 111 if you have any concerns about yourself or unborn baby during self-isolation.

Pregnant women are advised to contact their midwife, out-of-hours helplines or a maternity team who will provide information on whether you need to go to hospital.

For big firms, there will be a new lending facility arranged with the governor of the Bank of England.

For smaller firms, a new business interruption loan scheme - announced at last week’s Budget - will be extended from £1.2m to £5m, with no interest due for the first six months.

“Both of these schemes will be up and running by the start of next week,” he said.

He added a new legal power will be taken to “offer whatever further financial support is necessary” in the future.

The Chancellor and Transport Secretary will discuss in the coming days specific support for airlines and airports.

(Image: SWNS)

The government also announced a scheme of £25,000 cash grants for “pubs, clubs, theatres and other hospitality, leisure and retail firms”.

The Chancellor had already said business rates won’t apply this year to retail, hospitality and leisure venues with a “rateable value” under £51,000.

Now they will be also be offered an additional cash grant of up to £25,000 per business to “help bridge through this period”.

The business rates holiday will now be extended to all firms in the hospitality, leisure and retail sectors - regardless of their premises value.

“That means every single shop, pub, theatre, music venue, restaurant, and any other business in the retail, hospitality or leisure sector will pay no business rates whatsoever for 12 months,” the Chancellor said.

However, Mr Sunak claimed his new funding won’t be needed for firms that have insurance against pandemics - despite firms flatly warning they’re unable to claim.

Despite warnings about insurance payouts the Chancellor said: “For those businesses that do have a policy for insurance that covers pandemics, the governments action is sufficient and will allow businesses to make an insurance claim against their policy.”

Support from last week’s Budget to 700,000 small firms eligible for Small Business or Rural Rate Relief, worth £3,000 per firm, will now be worth £10,000, the Chancellor said.

Mr Sunak unveiled the measures after the Government's chief scientific adviser said around 55,000 people in the UK now have Covid-19, as the NHS moved to cancel all non-emergency surgery and 71 people are now known to have died.

Sir Patrick Vallance told MPs it is hoped the death toll can be kept to under 20,000 as he told of the huge amount of strain the health service will be under from Covid-19.

Leaders unveiled tougher social-distancing measures on Monday, urging Brits to avoid pubs, clubs and workplaces and steer clear of large social gatherings.

See our full guide on how to apply for a mortgage break due to coronavirus, here.