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Insurance payment holidays

Mortgage payment holidays have been available some time and you should only consider a payment holiday if you really need it.

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At Clever Mortgages we understand that these continue to be worrying times, and you’re doing your best to look after yourself, your family and friends.

Mortgage payment holidays have been available some time and you should only consider a payment holiday if you really need it.  We have further guidance on this here.  If you do need to contact your lender, you can find useful links here.

The Financial Conduct Authority (FCA) have issued guidance today (14th May 2020) to insurance providers to help policyholders who are experiencing financial difficulty because of the coronavirus.

It’s great to see that some insurance firms have already offered help to customers, but the measures now cover the wider insurance industry and guidance to offer support such as premium reductions, discounts, waiving fees, and payment deferrals.

The measures come into force 18th May 2020 and insurers may look at amendments to cover to reduce premiums or a payment deferral (holiday) if its in the customers best interests to do so.

The payment deferral will initially be granted for 1 to 3 months and requests can be made up to 18th August 2020, being the 3 month window.  If you need to contact your provider, some useful contacts are here.

As a reminder, if you have protection policies in place be that life, critical illness or income protection insurance, accident, sickness and unemployment cover or buildings and contents insurance.  You can keep yourself and family protected by retaining the valuable cover and requesting a payment deferral.

Life, critical illness and income protection insurance is underwritten and confirmed when you start paying for the policy.  This means the insurer will guarantee the cover you have and will not make any amendments due to a change in your health or any new diseases in the population.  This will not be impacted by taking a payment deferral, but would if you cancelled your cover and then re applied at  a later date.

You can read more about the importance of protection cover here.

If you need to talk through your mortgage or protection options, you can contact us

From everyone at Clever Mortgages team, we’d like to wish everyone and their families all the best and pass on our encouragement to keep strong throughout these unparalleled times.

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