This Morning opened the phone lines to help with worried queries about the financial implications.
The segment entitled ‘Coronavirus: your financial concerns,’ welcomed the nation’s favourite Money Saving Expert Martin Lewis to help…
How will Coronavirus affect finances?
Can I suspend my mortgage payments?
‘Many mortgage providers understand the situation,’ Martin explains. ‘And if you can’t work due to Coronavirus and that is causing your problems I would absolutely, first thing, discuss it with them. Be honest and open and hopefully they will make the terms easier. They are saying they will do but it’s a case by case’.
Martin goes on to say, ‘We are seeing a lot of mortgage providers, especially the ones who still have share holdings from the state, talking about forbearance.’
‘Now forbearance is not just on mortgages, that may mean reducing your payment, delaying your payment and increasing the term of your mortgage – which effectively reduces your mortgage (each month).’
Exploring further possibilities Martin goes on to explain it may also mean ‘increasing people’s credit card limits is something they can do, allowing you to take money out of fixed rate savings.’ But he does warn he’d be careful when taking from savings because rates are so poor at the moment, and you are probably locked in a high rate for taking the funds out. So look into that further with your finance provider.
‘We have this forbearance starting to be shown by banks and financial institutions, if you’re in trouble talk to them.
‘The impact on your credit score is one we’re still digging into, whether it will have a knock-on affect on your credit file. I don’t yet fully know the answer to that, I’d hope it wouldn’t.’
Martin concludes by saying, ‘I’ve just agreed to do a live ITV show on Thursday where hopefully I’ll have all the details by then.’ He’s finding out all the answers to the questions we’re all asking, tune in with him to find out more.
We all have to show a little patience is Martin’s resounding advice.
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