Well, this is an article we never thought we would need to write. The first official pandemic in a decade, and the most severe since Spanish Flu, Covid-19 has turned life as we know it upside down. With many businesses shut down and both employees and business owners unable to work, a lot of people are starting to feel the sting in their wallets. And with no end in sight just yet, the pressure to make your money go further is building. So today, we wanted to give you a few tips that could help you save money during the pandemic, without sacrificing the things that are keeping you sane.

Make Sure Your Memberships Are Frozen

Most of us have memberships and subscriptions to things. Hopefully we know what they all are and use them all regularly, but some we may not. And others, while we did use them regularly, are now on hold until the pandemic is over and lockdown lifts. Make a list of every membership you have (gym, Amazon Prime, groups etc), along with any subscriptions (Netflix, audible etc). Any that you aren’t using, or can’t use for the moment should be frozen. Some businesses – like gyms – have been good about doing this automatically, or else moving to an online platform that means you can still use them. But if you can’t use them, haven’t used them in a while or don’t think you need them through the pandemic, see if they can be put on hold, or cancel them altogether if need be. This will help free up some money in the short term, and you can always restart them again when the world starts getting back to normal.

Review Your Finances

There are still a surprising number of people out there who are too scared to check their bank balance regularly – but now is the time to overcome that fear. In a world of uncertainty, every penny counts, so open up the banking app and take a look. There has never been a better time to create a budget. Write out a list of your regular outgoings, and what you’re expecting to come in over the next few months. That includes things like food, housing costs and any essential bills. Be realistic about what you’re spending – it’s all too easy to think that a lockdown means you won’t be spending any money at all, but that’s rarely the case (in fact a lot of people are spending more thanks to online shopping).

A good review of your finances can help you understand where there is unnecessary spending, and this can help you make some cuts fairly easily. For now, eliminate anything that isn’t essential to your life or your wellbeing. You can always restart them once the pandemic is over, but for now, spend your money wisely. Be sure to include repayments on any payment holidays into your long-term budget as well, so you aren’t caught out.

Check Your Bookings

If you’ve booked for anything in advance – from a holiday to a party or attending an event – it’s likely been cancelled or postponed for the foreseeable future. If this is the case, then you may be eligible for a refund on the booking. For example, airlines are offering the option of a refund or transferring your flight to later in the year without any fees. Large scale events are offering refunds on ticket prices. If you have travel insurance, you may be able to put in a claim to get some or all of your money back (though check the fine print for any exclusions). Some might be big, some might be small, but it could all help.

Look Into Financial Help

The good thing about this situation is that the government has recognised the impact, and has been working overtime to create support options for everyone. The government, financial regulator and some of the UK’s biggest banks have announced a wide range of measures to help customers who might be facing financial difficulties, and there is no harm in taking them. You may qualify for one of the options or a few, and it’s worth taking some time to figure out which ones work for you. A few of the options you can look at include:

• Payment holidays for personal loans (there’s a great list of the banks offering these here)
• Mortgage payment holidays (now also available for help to buy homeowners)
• Universal credit
• Statutory sick pay (available for all employed workers from day 1 when self-isolating, instead of day 4)

You also have the financial help available from your bank. All banks are offering options like mortgage holidays, credit card payment holidays and waiving overdraft fees, which means you can conserve some cash during the pandemic, or not have to worry about going into major debt if you do have to dip into your overdraft.

If you’re a business owner, then there is also a range of financial support options to chose from, which you can find out more about (and if you’re eligible) here.

If you’re not sure what you’re eligible for or how to claim it, or just want some general advice about finances during the pandemic, chat with your financial advisor for advice and information. At Chilvester Financial, our advisers are available over the phone, email and video call to help support you through this difficult time. So if you need anything, don’t hesitate to get in touch.

Stay safe everyone.

The world today looks very different than it did just 8 weeks ago. Entire industries that were thriving are now on the brink of collapse, the workforce has gone digital and no one has ever spent so much time at home. Over the last few weeks a lot of our clients have got in touch to ask about how Covid-19 will impact the mortgage market, and what they should be doing to make sure they are as in control as possible. So today we’re going to answer a few of the most frequently asked questions about mortgages in the time of Covid-19.

Can I Still Apply for A New Mortgage, Or Remortgage?

On the whole, banks and lenders are still happily taking new applications for mortgages and remortgages. In fact, there’s still a lot of fierce competition in that area, with lenders often fighting for customers! And when it comes to remortgages, now could be one of the best times to look at it. Interest rates have never been lower, so those with more unfavourable rates are now switching to new lenders or just new rates with their existing lender.

Having said that, it’s more important now than ever before that you ensure you can afford the repayments before you start any new application.

Is Now A Sensible Time to Remortgage?

As we mentioned, interest rates are as low as they have ever been, so from that standpoint remortgaging might seem like a great idea. But the truth is we don’t have a magical crystal ball, and there is no way for us to be able to tell you what the future holds, or what the financial climate will be when this pandemic is finally over. But what we can say is that fixing your mortgage rate is often a great way to create certainty about your monthly outgoings, and with rates as low as they are, now might be a prudent time to take a look at your mortgage and see what better deals you could get.

I’m Not Sure If I Can Afford My Monthly Repayments Right Now. Should I Be Worried?

This is a really common question, and we know just how much it’s been plaguing everyone with a mortgage right now. No one wants to deal with the idea that they have been furloughed from work and are now struggling to afford the roof over their head. But the government know this, and they’ve put some plans in place to support you. The main one is the mortgage holidays scheme, which allows you to take a break from paying all or part of your monthly payments for up to 3 months. This should give you some breathing room and make the next 3 months a bit easier to deal with. However, you should remember that this is a deferral, not a free pass. Taking up a mortgage holiday may increase the amount you owe, or mean you owe a larger chunk in one go at the end of the 3 months, depending on the terms set out by your bank. So, always make sure you read the fine print, and if you can keep paying your mortgage comfortably now, do so, and only take the holiday option if you really need it.

Should I Be Worried About the Housing Market?

Right now the Covid-19 situation hasn’t really had much of an impact on the housing market. In fact, the latest Price Index from Rightmove shows quite buoyant figures for March. These figures may not take into account the latest impacts of Covid-19, but it is a very positive sign. Of course, it is possible that some will delay putting their houses on the market until there is more confidence in the financial situation, but there will still be plenty of people needing to move for all sorts of reasons.

Will My Mortgage Application Be Delayed?

Part of this depends on the lender, but generally speaking mortgage applications seem to be being processed at the usual speed. But with some banks having lower staff numbers, and more potentially suffering as the pandemic goes on, this may change. With this in mind, if you’re planning to remortgage or take out a new mortgage this year, we’d recommend starting the process slightly earlier than you would usually need to, just to make sure everything is in place when you need it.

It’s a time of great uncertainty for everyone, but the team at Chilvester Financial are dedicated to providing you with as much information as we can. We might not have all the answers, but we are here to listen, give advice and help support you as much as possible. If you would like to have a free, no obligation chat with one of our financial advisers (via phone or video call of course), then just get in touch today.