There are a number of schemes currently available to help borrowers with financial obligations during the Covid-19 lockdown. You should contact your lenders to discuss what support they can provide. The most common support options we see being offered at the moment are:Personal loans & credit cards:
Most banks are offering the ability to apply for payment holidays on personal loans. For credit cards the landscape is more complex, with many banks still working on the support options they will provide. Some banks have promised not to charge late payment fees on cards, and others are saying they will offer payment holidays and emergency credit limit increases. Be careful and make sure you understand the terms
. While late payment penalties may be waived, in most cases interest still accrues. That means you may end up paying high interest rates (25%+) on unpaid card balances if you take up a payment holiday, which can be very costly in the long run. For an example look at Nationwide's credit card payment holiday scheme
: they allow customers to reduce monthly payments to £1 per month, but also state that "interest will be charged at your standard rate." Overdrafts:
Many banks are offering some form of interest free overdrafts. The terms vary significantly via bank, so make sure you check the terms your banks offer. For example, Barclays is waiving interest on all authorised overdrafts, whereas Lloyds is offering £300 interest free overdrafts.Mortgages:
3 month payment holidays are the standard support option being offered for mortgages, where customers can show they are eligible. Three-month mortgage offer extensions for homemovers are also common.