Archive: MoneySavingExpert's Money Tips Email

Martin's warning: 'If you've a mortgage, credit card, car finance or loan, or you pay insurance monthly, you've only 10 days left to apply for a 3mth payment holiday - don't delay if you need it'

Four key personal finance support pillars were put in place during lockdown - furlough, self-employment grants, a universal credit boost and the right to take 3mth payment holidays on most debts. While as a nation we're far from out of the pandemic's clutches, these schemes are gradually being dismantled. With most, there's little you can do to alter that. Yet with payment holidays, if you get in before they shut, they last 3mths. So everyone should evaluate ASAP if they need one...

• Apply for a payment holiday before 31 Oct and it lasts 3mths. If your finances are impacted due to Covid-19, apply for a payment holiday - meaning you needn't make repayments - by the end of the month and you'll get 3mths almost automatically. My What payment holidays can I take? blog has full help, but briefly, holidays are available on... mortgages, overdrafts, credit cards, personal loans, insurance, car finance, buy-now-pay-later, rent-to-own and pawnbroker loans.
  
  Though if you've already had two 3mth holidays on a single product, if you apply for another on that same product you'll be put on to the post-31 Oct regime (see below). There's also a month's payment and interest holiday for payday loans.
  
  
• If you NEED one (or will need one), take it, but ONLY if you really need it. A payment holiday is far better than missing payments without an agreement. Yet be aware there are two major consequences:
  
  - Interest racks up. Many wrongly assume interest is frozen if you take a payment holiday. It's not. It still accrues, and the fact you're not repaying results in a higher balance, meaning more interest will rack up. Eg, someone paying £600/mth on a mortgage with a 12yr term remaining who takes a 3mth holiday will typically have 11yrs and 9mths to repay at £616/mth. The shorter the remaining term, the bigger the impact (see Mortgage Payment Hols Calc).
  
  - It can impact your ability to get future credit. Currently these specific Covid-19 payment holidays don't go on your credit file but, as we revealed in May, lenders can factor them in to lending decisions after spotting it via application forms, Open Banking or your payment history. Yet so far, once the payment holiday is over and you've made a few repayments, we've not seen too great an impact.
  
  So if you don't really need a 3mth holiday, don't do it, or take a shorter break or make some voluntary repayments if you can. Yet if you're struggling, do apply now and get the help you need. And with the deadline looming, my standard 'only take it if you NEED it' needs the addition of 'or think you may really need it soon', as future help is diminishing and these payment holidays are for most better than what will be available after 31 Oct.
  
  
• Limited help will be available after 31 Oct, but then it'll go on your credit file. On 1 Nov, we'll move from blanket one-size-fits-all payment hols to 'tailored support', which will depend on your circumstances. It could be payment holidays, reduced payments, lower interest or a different product. And that help WILL go on credit files, likely having a more substantial impact on your ability to get future credit than the current help. See full 'future help' updates for mortgages | loans, credit cards & other consumer credit | car finance | overdrafts | insurance.

As always, all the latest coronavirus support info is in our constantly updated, in-depth guides on... Travel rights | Employees | Self-employed & ltd co | Finance & bills | Benefits | Lockdown life

Ends Thu. BT's '£25/mth' deal is its cheapest superfast home broadband & line in 2020, though Vodafone's just '£20' - HALF what many pay now

BT rarely launches hot deals, but we know many like it as a brand, and as it's offering superfast broadband at its cheapest rate this year if you sign up in the next couple of days, it's worth pointing out. However, if you're willing to go elsewhere - as you should do - you can undercut BT. As always, the deals below are short-lived, via special links and only available for those who aren't an existing customer of that firm, or who haven't been in the last year. 

• Advertised speeds are more reliable than in past years. Rules have been tightened so now more than 50% of customers must get the advertised speed at peak times. And there are other protections in place too. See how to check your current speed and 8 speed-boosters.
  
  - Most firms, incl all those above, tell you the estimated max speed you're likely to get before applying.
  - BT and Plusnet let you cancel if your speed doesn't match this for 3 consecutive days and it isn't resolved within 30 days.
  - Vodafone will give a 15% discount on your monthly bill if it's slow, eg, under 55Mb for superfast fibre at any time. Just run a test via the app.

• Usually there's no need for an engineer to visit when switching (apart from some ditching Virgin). Most firms require you to have a BT Openreach line, which is the underlying tech for most non-cable broadband that millions already have. Though if you're leaving Virgin's cable broadband, an engineer may need to come round to install a line.

• Switching often means 2hrs-ish of downtime. You're told the switch time in advance and it's often quick. Occasionally the outage is longer, so consider the risk, but hopefully your mobile data can cover any gap.