Financial sector rallies to support UK in crisis

AS THE coronavirus revolutionises how we work, play, travel, shop and spend our money, financial services companies are battling to keep up. Banks, building societies, credit card issuers, energy suppliers, mobile phone companies and fund managers have taken action to ease the worst of the crisis.

New measures are being introduced all the time but these are just some that may help you get through this unprecedented period.

Home energy bills may increase as people work at home or self-isolate, and Uswitch.com calculates that extra gas and electricity usage could push up bills by £155 a year.

British Gas may push back bill due dates or scrap late payment charges for the vulnerable, while EDF may offer delayed payments. If in trouble, contact your supplier. Switching could also cut bills.

Energy regulator Ofgem expects suppliers to support prepayment meter customers who cannot top up during the pandemic, particularly the elderly and vulnerable.

At least the clocks go back next week and lighter, warmer days could ease the pressure.

BANKS

Many banks are waiving fees for missed credit card and loan repayments, offering reduced payments, and allowing savers to release money from fixed-rate deposit accounts without penalty.

Lloyds Banking Group and its subsidiaries Halifax, Bank of

Scotland and MBNA are dropping fees for missed payments on credit cards and loans, and granting emergency access to fixed-term savings accounts.

Natwest and Royal Bank of Scotland also allow savers to access fixed savings without penalty, as well as claim refunds on credit card cash advance fees, apply for a temporary increase to their credit card limit, or make debit card withdrawals up to £500.

Barclays is removing penalty fees on fixed-rate accounts and allowing temporarily higher credit card limits, with Tsb,virgin, Clydesdale Bank, Yorkshire Bank, First Direct and others announcing similar measures.

The Financial Conduct Authority is banning credit card issuers from cancelling cards where customers are in persistent debt, until October at the earliest.

Many Nationwide building society branches will open an hour early at 8am for those over 70 or with underlying health conditions.

Personal finance expert Andrew Hagger from Moneycomms said:

“Do not hesitate to contact your bank if you need help.”

MORTGAGE HOLIDAYS

Last week, Chancellor Rishi Sunak granted mortgage borrowers a three-month payment holiday to stop or reduce their monthly repayments.

Joshua Gerstler, chartered financial planner at The Orchard Practice, said these are reserved for borrowers who are up to date on their mortgage: “If you need help, contact your lender.”

Missed payments will be added to your loan and you still have to repay the interest in future, he added.

Credit reference agencies Equifax, Experian and Transunion say payment holidays will be recorded on credit reports but should not damage your score. Buy-to-let landlords can also apply for a mortgage payment holiday, but are barred from evicting tenants during the pandemic.

Andrews Property Group chief executive David Westgate said: “The measures will help homeowners, tenants and landlords through these extraordinary times.”

Landlord associations are calling for flexibility over evicting anti-social tenants, who could inflict more misery on fellow tenants and neighbours as people stay home.

Freelancers and the self-employed have been helped by the Government delaying new IR35 off-payroll accounting rules, but Philippa Childs, head of union Bectu, also called for interest-free tax back loans, suspended credit card interest and help for renters.

PROPERTY FUNDS

Investors have been blocked from withdrawing

£13 billion held in property funds, including Janus Henderson UK Property, Aberdeen UK Property, Standard Life Investments UK Real Estate and Aviva Investors UK Property. BMO UK Property and M&G Property Portfolio have also temporarily suspended trading.

These property funds are set up as open-ended unit trusts and must sell property to meet redemptions, impossible in the current market.

MOBILE SUPPORT

As more people work at home or self-isolate, mobile companies are trying to help them stay in touch with loved ones.

Sky Mobile is giving customers an extra 10GB of data free of charge, whilevirgin Mobile is granting Pay Monthly subscribers unlimited minutes to landlines and other mobiles, plus a 10 GB data boost for a month and Uswitch.com mobiles expert Ru Bhikha said: “Mobiles are a lifeline for those working from home, or vulnerable and older people who are self-isolating.”

With major sporting events cancelled or postponed, Sky Sports now allows customers to pause subscriptions without charge, by calling 0800 151 2747.

‘The measures will help homeowners, tenants and landlords in extraordinary times’