If you are struggling financially as a direct result of the ongoing coronavirus pandemic, money-saving expert Martin Lewis may have a temporary solution.
During the latest episode of The Martin Lewis Money Show Live, the consumer champion shared details of four banks that are offering overdraft supprt.
He said: “There is no longer any official overdraft help, but four banks - Lloyds, Halifax, Bank of Scotland and Santander - will currently give you a three-month, £500, zero per cent overdraft if you are struggling financially due to coronavirus.”
However, the banks are only offering that provision until January, 31, 2021, so if you are in need of financial support, check their websites for more information.
Martin also explained to viewers how payment holidays are still an option for anyone finding it difficult to keep up with monthly repayments.
He said: “Payment holidays are on right now, they’re not new, they’re on until 31st March - mortgages, cars, loans, car finance and more.
"If you are struggling due to Covid, then you are due up to six months automatically, though you apply in three months at a time.”
But he also had a warning for anyone considering it.
“Only do this if needed though, this is important,” Martin said.
He continued: “A payment holiday doesn’t mean the interest won’t rack up, it does rack up and while it won’t go on your credit file, while you’re on a payment holiday if you’ve got a mortgage payment holiday, you’re not going to be able to apply for a remortgage, so only do it if you have to.”
If you’ve already had six months of support, Martin says your only option is to apply for what’s called “tailored support” where the lender will look at your circumstances and decide what support they can give you.
Martin urged caution though: “That will go on your credit file, so it’s almost more serious if you like and they won’t necessarily give you a payment holiday.”
The Martin Lewis Money Show Live airs at 8.30pm on STV.
