End of October Bringing Financial Changes for UK Consumers

U.K. consumers are facing significant financial changes by the end of October, as many government-implemented assistance programmes are wrapping up. But more assistance may be available for people who need it.

Financial difficulties have been common in 2020. Many have lost jobs or faced losing their homes, but the government has created several lifelines to help support those struggling.

Major financial assistance plans that have been available during the pandemic will be ending by 31 October, according to Express. If you are still struggling or are affected by the pandemic’s many challenges, be sure to contact your financial institutions to make further arrangements. 

Furlough Scheme Ends

Over the course of the COVID-19 pandemic, over 9 million U.K. residents have been furloughed, but the furlough scheme will be ending on 31 October, according to The Sun.

The furlough scheme has been there for Britons in times of need, covering up to 80% of monthly wages, The Sun reported.

The Coronavirus Job Retention Scheme — or furlough scheme, as it’s been commonly known — began in March during the early stages of the pandemic. It has undergone a few changes since then. 

The changes in the furlough scheme included employees going back to work part-time and the government and employer covering some wages to recoup employees’ earnings.

There will be a new furlough scheme coming into effect on 1 November, but it’s probable that it will not help as many people.

Under the Job Support Scheme, employers and the government will chip in for about a third of workers’ wages to support a lack of hours, The Sun reported.

When the furlough scheme ends, many workers will face redundancy.

Mortgage Holidays End

This is Money reported homeowners who have taken a mortgage holiday will now see that end by 31 October.

As that date approaches, now is the time to restart payments or negotiate a new payment arrangement with lenders.

If homeowners are still struggling to make payments after the end of the mortgage holiday, there are some helpful options available.

According to This is Money, borrowers can extend their mortgages, therefore adding more time to pay, which will lower the monthly mortgage payment. 

Another alternative to the mortgage holiday is asking lenders if an interest-only mortgage is possible. Paying interest only can reduce mortgage payments.

Talk to mortgage lenders right away to discuss the next options after your mortgage holiday ends.

It’s important to remember that homeowners who continue to benefit from a mortgage holiday may have their credit report affected.

Interest-Free Overdrafts End

Financial help during the pandemic was offered in the form of interest-free overdrafts of up to £500, but the deadline for requesting one is 31 October, according to The Sun.

Some financial institutions automatically offered them without customers having to ask, but these types of interest-free overdrafts have ended now.

If you are struggling, you have until the last day of October to request one or ask to extend your existing interest-free overdraft arrangement.

After the termination of interest-free overdrafts, banks may still offer them only on an individual basis, according to The Sun.

Insurance Payment Assistance Ends

Insurance firms have allowed financially struggling customers to take breaks from payments, but insurance payment deferrals will only be available until 31 October, The Sun reported. 

Insurance firms can assist customers by reducing premiums or waiving fees, but this help will soon come to an end.

Contact your insurance company to find out what options you have if you are struggling. 

Home Repossessions Begin Again

Homeowners have been given a break from having their homes repossessed, but after 31 October, repossessions can begin again.

If a homeowner was already being repossessed, the process can begin where it left off, according to The Sun. 

Struggling homeowners in arrears should get in touch with mortgage lenders to make arrangements.

What are your thoughts about furlough schemes, mortgage holidays and other financial assistance schemes coming to an end? Do you think assistance should be extended, or has the government exhausted its resources? Tell us in the comments.

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