We’ve heard all about the financial support that the government has provided for personal service companies during the coronavirus crisis, but did you know that you may also be able to request breaks for monthly payments if you’re struggling?
Payment breaks are where costs are waived or abolished for a period of time, usually granted in circumstances such as a temporary drop in income or a gap between jobs.
From mortgages to car payments, rent to overdraft arrangements, we’ve looked at areas in which payment breaks could be available.
Forbearance on mortgages
As the coronavirus crisis raises concerns over how mortgage payments will be made, banks have agreed with the Chancellor that help will be given to those that need it, regarding any difficulties in keeping up with mortgage payments.
Well, what does this mean for you? At the bank’s discretion, they will be able to provide you with a three-month mortgage ‘holiday’, allowing you to take a break from making mortgage payments during these three months.
One thing to note, is that interest will still be charged on these three months, however you will not have to pay this back immediately. It will be added onto the outstanding total of your mortgage and will be incorporated into your repayments once they resume.
Our partners at CMME have put together some guidance regarding mortgage holidays, read more here.
Help is not just for homeowners
If you are struggling to make payments as a result of coronavirus, then explain your concerns to your landlord. They may agree to reduce your rent or give you more time to pay.
The government has also announced emergency legislation to suspend evictions from social or private rented accommodation, meaning that your landlord cannot apply for possession proceedings until rent payments have been missed for at least three months.
In Scotland, private and social tenants are protected from eviction from up to six months.
Help from your bank
If you believe you are at a financial disadvantage due to coronavirus, or will be soon, and you end up in your overdraft for daily expenses, or perhaps you need to dip into your savings, your bank may have assistance in place.
As your bank directly to see what assistance they have available should you come into any difficulty.
Putting the brakes on car payments
Car finance can quickly become complicated at the best of times. However, considering recent events, there are options available for those that need assistance. These include reduced payments, payment deferrals and payment holidays.
The financial regulator has confirmed a set of measures designed to help those struggling to make payments, including payment freezes for those struggling to make payments related to car finance. From Monday 27 April, firms must honour a three-month payment freeze to customers who request one, although interest will still continue to accrue during this time.
If this is something that you think would benefit you, we would recommend contacting your finance provider as they can offer the best solution based on your personal circumstances.
There’s help out there
There’s one main thing to take home from this, there is support out there if you’ve been affected financially by the coronavirus crisis.
As your accounting partner, we’re not just here to guide you through your career, we’re here to provide help when you need it. That means supporting you through times like this, whether it’s providing you with financial guidance or giving you tips for successful home working.
You can find more information, news and contractor updates, simply by visiting our blog.