Citizens Advice Salford

Special arrangements during the Covid crisis for debts:

At the beginning of the Covid crisis a number of emergency measure were introduced to help people manage their outgoings – especially in terms of mortgages, rent, car finance, personal borrowing, and council tax. As the crisis has run on these arrangements have generally been renewed, and here is an update on the main special measures – so that you are aware of what you have as a right to help you manage through this very difficult period.

There is no need in Salford to pay for any money or debt advice. Citizens Advice Salford – (as well as across the country) provide the national Money and Debt Advice Salford in Salford.  Which is free to all.

Mortgage Payments:

Mortgage lenders have announced support if your income has been affected by the coronavirus outbreak, including a repayment holiday of up to a maximum of six months. The deadline for applying for a repayment holiday is 31 March 2021.

Your payment holiday can be up to a maximum of six months. So, if you have already taken the full six-month payment holiday, you cannot apply for another one. However, your lender might be able to help you in other ways.

If you’ve already taken your full payment holiday, it’s important you understand what happens when it comes to an end. Speak to your lender.

If you’ve already taken a payment holiday, this can be extended up to a maximum of six months. However, it’s in your best interests to start your repayments again if you can afford to.

Cancelling your direct debit is not a payment holiday and will be counted as a missed payment if it has not been agreed with your lender. You should not cancel your direct debit without speaking to them first. A missed payment could show up in your credit file and may impact your ability to remortgage.

Individual credit files should not be affected but if you are worried you should speak with your lender. You should also remember there are other ways lenders can tell whether you have taken a mortgage payment holiday which could impact future lending decisions.

Lenders might take into account other information when making lending decisions, including information provided by you or bank account information.

For more information go to: 

https://www.moneyadviceservice.org.uk/en/articles/mortgage-payment-holidays#applying-for-a-mortgage-payment-holiday

 

Rent Arrears:

Your landlord must take certain steps before they can evict you for rent arrears.

No evictions by bailiffs will take place until after 21 February except in very limited circumstances.

Evictions may still go ahead if the landlord has proved either: antisocial behaviour, or at least 6 months’ rent arrears.

The courts will continue to process cases during lockdown. You still need to read any letters from the court and attend the hearing if there is one. 

If you receive notice from your landlord of their intention to evict, you should seek advice from us straightaway. 

 

Car Finance:

If you’ve not taken any holidays on your car finance payments yet, you can apply for a payment holiday of up to six months in total. However, you should continue to make payments if you can afford to.

If you’ve already taken a payment holiday, this can be extended up to a maximum of six months. However, it’s in your best interests to start your repayment s again if you can afford to.

The deadline to apply for a car finance payment holiday has been extended to 31 March 2021.

If you have already taken the full six-month payment holiday, you cannot apply for a further holiday.

 

Personnel Borrowing:

If you’ve not taken any holidays on your personal loan payments yet, you can apply for a payment holiday of up to six months in total. However, you should continue to make payments if you can afford to.

If you’ve already taken a payment holiday, this can be extended up to a maximum of six months. However, it’s in your best interests to start your repayments again if you can afford to.

The deadline to apply for a payment holiday has been extended to 31 March 2021.

If you have already taken the full six-month payment holiday, you cannot apply for a further holiday.

 

Council Tax:

Council tax bills usually provide for ten monthly payments – so unless you are in arrears there is nothing to pay for February or March, with the new Council Tax year starting again in April. If your income has reduced, then make sure you have claimed any support that you might be entitled to.

Salford City Council runs its online ‘Coffee and Chat’ sessions where you can quickly check where your council tax is up to, and where you can get advice about any arrears that have built up.

You can find out more on: https://www.salford.gov.uk/benefits/advice-sessions/

Or call on 0161 793 2500.

For help about any money worries you might have call us on 0808 27 87 802.

 

Tom Togher,

February 2021.