This morning, the Bank of England cut rates in an emergency move amid coronavirus fears.

In an unscheduled meeting, the monetary policy committee unanimously agreed to slash the base interest rate from 0.75% to 0.25%.

The move was announced at 7am today. It went beyond a widely anticipated cut of 0.25% and comes ahead of today’s Budget.

Meanwhile, mortgage borrowers affected by coronavirus may be given a three-month payment holiday. Small business owners whose income suffers a slump could also be eligible.

RBS yesterday announced this decision, while TSB announced a two-month holiday and other lenders are likely to follow.

Mark Harris, of mortgage broker SPF Private Clients, said: “Lenders are reasonably sympathetic to any illness that affects a borrower’s ability to pay their mortgage, whether it’s coronavirus or something else.

“They may ask for evidence that you are unwell, but the message to borrowers, particularly the self-employed who are most likely to be affected in terms of their income, is that if you are struggling, get in touch with your lender.”

However, he warned that lenders are not under any obligation to grant payment holidays and are likely to be less supportive of habitually late payers.

In Italy, which is under total lockdown, the government is negotiating with banks to provide breaks from loan repayments including mortgages.

Italian bank association ABI has already announced voluntary steps implemented by most of the country’s lenders, whereby borrowers can ask to suspend or extend repayments on loans including mortgages.