DEAR TRICIA
Q
I’m thinking of taking a mortgage holiday but I’m worried about what the long-term effect will be on my repayments when the holiday ends. Is there anywhere I can get an idea before I make a formal application for a break to my loan repayments?
A
When you take a mortgage holiday, repayments are paused but interest will still be added to the balance and usually you will need to pay a bit more each month to make up the shortfall. Moneysupermarket has just launched a free online mortgage calculator where you can find out what this could mean for your future repayments. You can try it at: moneysupermarket.com/mortgages/ search/payment-holiday.
Q
I read your column last week regarding the rise in the state pension to £175.20 per week. I retired in August 2011 and my new pension will be much less than this. Why the shortfall?
A
The £175.20 figure is for those on the newer state pension, ie people who reached state pension age from April 6, 2016 onwards. Anyone who started getting their state pension before that date will be on the older system which currently pays £134.25 per week.
Q
I’m thinking of putting the cash I am saving by not going out or travelling at the moment into savings. I’ve never been able to afford to save before. Will my money be safe during these turbulent times?
A
Savings up to £85,000 per person, per provider, are protected in accounts with authorised banks and building societies under the Financial Services Compensation Scheme. You just need to ensure the provider you place your cash with is authorised by the Financial Conduct Authority. See register.fca.org.uk.
Q
I took early retirement last month and planned to use my pension pot to get a five-year annuity to get me to state pension age. However, my pension has lost a few thousand pounds recently. Should I try and wait until markets recover or cut my losses and buy an annuity now?
A
This will depend on your personal financial situation and whether you need the money now or can wait to access it. No one knows how long the current crisis will go on for, and once it is over, how long it will take for the markets to recover. You need to do the sums and work out your budgets to see where you stand and how urgently your need is for this money.
Q
My credit card firm contacted me a few weeks ago to say it was suspending my card under the persistent debt rules. I’ve heard the rules around persistent debt have been deferred. Does this mean my card won’t be suspended now?
A
The Financial Conduct Authority has suspended its credit card persistent debt rules because of concerns around the coronavirus. It has told banks that credit cards cannot be suspended until October at the earliest.