If your personal circumstances have been impacted by the Covid-19 pandemic, here are 3 ways that you can try to ease the financial burden.
1. Take a rent or mortgage holiday
All major mortgage lenders will provide you with a 3-Month repayment holiday. However, you should remember that this is not a reduction in your mortgage and so your mortgage term will be increased accordingly. Interest will continue to accrue during the holiday period too.
Private landlords are also eligible for a 3 month buy-to-let mortgage holiday so if you are in rented accommodation, speak to your landlord so you can take a short break and they are not out of pocket.
2. Speak to other lenders about reducing or pausing repayments.
Most major banks, finance houses and lenders are sympathetic to the current situation and will be open to discussing how to assist you.
Loans – speak to the lender about capital (& Interest) repayment holiday.
Credit cards and store credit accounts – reduce repayments to the minimum payment period for a few months, but be aware that interest will continue to accrue on outstanding amounts.
Utilities and Councils – Councils, water, energy and domestic utilities companies are offering to defer payments for those in financial difficulty.
3. Self-assessment payment on account deferral
Self Assessment payments on account that are/were due on 31st July will be deferred until 31 January 2021. No application is required by any individual wishing to take advantage. HMRC is simply not chasing any payments for which the above applies. Please be aware that you will still be required to pay the full year’s tax.
If you have questions or need help, please contact a member of our team for more information or to see how Evans Weir can help you through this current period of uncertainty and beyond.