The economy has taken a huge hit from the coronavirus pandemic grinding businesses to a halt. The Chancellor, Rishi Sunak, has offered vital measures to keep the public afloat but Britons must not expect these to be put in place automatically. Finance expert Sean Farrington explained to the BBC that the public must contact their banks in order to see what applies to them personally.
Speaking to BBC’s Newscast, Mr Farrinton said: “If you’ve got a mortgage, most bankers will lend you payment holiday on your mortgage.
“Similar with loans you might have with banks already.
“Credit cards, not so much payment holidays but a lot of places are waiving fees and offering credit extensions.
“If you need to get through the next few months and you have to find some money from somewhere that’s one way.”
He continued: “All these things, you have to speak to your bank.
“Don’t just assume because you’ve read it somewhere.
“Speak to your bank. Lots are offering interest-free buffers, somewhere are waiving it as well.
“Those are ways of getting loans but if you’re after something new that’s pretty hard at the minute because the Government’s not really said anything about that.”
It comes as more than one in five millennials who had been saving for their first home are diverting the money towards coping financially day-to-day, a survey has found.
Some 22 percent of 26 to 40-year-olds who had been hoping to get on the property ladder will be dipping into their savings instead, according to the research from credit checking company TransUnion.
The housing market is grinding to a near halt as people put off their moving plans. Lenders are giving extensions on mortgage offers, to enable those who had been on the brink of moving to do so at a later date.
Some lenders have also been temporarily restricting the range of mortgages they are offering to new borrowers, particularly affecting those with lower deposits – such as first-time buyers.
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The survey of more than 1,000 people – carried out on March 23 and 24 – looked at the financial impact of the coronavirus pandemic.
It also found that more than a third (35 percent) of 26 to 40-year-olds are preparing to tap into savings and 22 percent are borrowing money from a friend or family member.
More than seven in 10 (72 percent) in this age group said the coronavirus pandemic had already affected them in some way financially.
This was a higher proportion than older age groups, but lower than Generation Z adults aged 18 to 25, with 78 percent in this group saying their finances had been hit.
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