What England’s Second Lockdown Means For Your Finances | Consumer affairs

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With England enter another lockdown on Thursday, the Treasury and the city regulator have stepped in to offer support to people who are unable to work during business closures.

Programs to keep people from falling behind on mortgage and loan payments, and to help cover their salaries, are being expanded.

What help for workers who are struggling to pay their mortgage?

The UK government’s mortgage holiday program, which gave households a six-month deferral of payments, was due to end on Saturday October 31 but this has been extended to help people who will not be able to work during lockdown.

the Financial conduct authority (FCA) works with lenders on the fine print. He proposes that households that have not yet had a payment deferral be entitled to two payment deferrals of up to six months in total.

Households that currently have an initial deferral payment in place will be eligible for another up to three months. Meanwhile, those who resumed their mortgage payments after an initial payment deferral will be entitled to another three-month vacation payment.

The FCA says it’s important that borrowers who can afford to make repayments continue to do so. He urges consumers not to contact their lender until the enhanced measures are in place. Lenders will provide more information soon.

According to the FCA’s proposals, borrowers would have until January 31, 2021 to request a deferral of payment. He also proposes that no one repossesses their accommodation without their agreement before January 31, 2021.

What about other loans?

Consumers are concerned about their finances due to an impending second coronavirus lockdown in England. Photograph: Skynesher / Getty Images

Here again, the reimbursement holidays which were to end on Saturday have been extended. The FCA says it wants lenders to offer deferrals for up to six months “unless it is clearly not in the best interests of the client.”

For high-cost short-term payday loans, for example, borrowers can request a month’s break if they haven’t already had a payment break.

The FCA says consumers are not yet expected to contact their lenders and will hear from them once the plans are confirmed.

My employer is going to close – can I be put on leave again?

Yes. The leave scheme was to be replaced by the much less generous Employment Assistance Scheme (JSS) on November 1. Instead, the leave will continue and pay up to 80% of workers’ wages – up to £ 2,500 a month – until December.

To benefit from the extension, employees must have been registered on the payroll as of October 30, 2020.

I have a short booked stay in UK in november – will i get my money back?

the Competition and Markets Authority previously said that refunds should be paid to customers who cannot take service due to government regulations.

Despite this, some consumers should be the losers. For example, Airbnb disagrees with the CMA’s position. He said his standard cancellation policy would apply to all bookings made after March, meaning some people will lose up to half of their money. The company retains its reservation costs in the event of cancellation by the consumer. Better let the host cancel, in which case you are entitled to a full refund.

I had to travel abroad – what happens to me?

Maspalomas beach
Are you entitled to a refund for a vacation reservation? Photograph: Valery Bareta / Alamy

After the Canary Islands were added to the non-quarantine list last week, November bookings for the destination skyrocketed as people tried to take advantage of the last minute sunshine. If you have to catch a plane before Wednesday night, you can still go. Trips that were scheduled to depart on or after Thursday are disabled and whether you receive a refund will depend on how you booked the trip.

Those who have booked a package travel will have that trip canceled and be entitled to a full refund under the package travel regulations.

If you’ve booked your own flight and accommodation, it seems a lot less certain. If your flight is canceled by the airline, you can request a refund, but if it continues you may not get your money back. On Monday, Ryanair has announced that it will not reimburse customers that don’t get on flights, it still works.

Few travel insurance policies pay for the cancellation of trips booked after mid-March, when the coronavirus pandemic became a “known event.”

Can I still move?

Yes. This time the housing market has not been blocked – the housing secretary said real estate agents and moving companies can continue to operate, and tenants and landlords can still move out.



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