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Right now, everybody is under the pump. We’re all feeling the uncertainty. We’ve been forced to stay at home, no work, reduced income, while mindful that this thing may go longer than the mandated four weeks.
We don’t oppose the measure. It’s good for all us and it will save lives. And there are, good news stories out there. I am hearing remarkable things about the Government’s financial support options. Businesses are receiving the money they need to pay workers quickly with easy applications. New businesses are applying for loans for support and the applications are easy and transparent.
The enquiries that I am fielding as a Financial Adviser amount to the same practical examination of one’s own financial situation as is being applied in business, ‘how do I reduce outgoings when my income has been constrained?” There are some good news stories here too. Partners Life a premier Insurance company is offering premium holidays for those suffering hardship – and the cover continues unabated! That’s awesome.
The banks have dropped interest rates and are now offering Mortgage Holidays! Hold on a second, is that the same thing?
No, its not.
Be careful when considering a Mortgage Holiday. Your indebtedness increases when on a mortgage holiday. That means you will pay more in interest. It’s not a free offer. Not at all. There are other options being offered that it might be better for you to consider. Interest Only because they refer the current floating rate which as you know has dropped. Some banks have agreed to increase terms (the length of time you have, to pay back your loan) which reduces monthly repayments. These are good options and should be considered – under advisement. Call a Mortgage Adviser today.