24th February 2014
Comparison site Gocompare has urged flood victims to consider the repayment implications of any overdraft extensions or mortgage holidays they take out to tide them over.
Several UK banks and building societies have announced that they are implementing measures to help relieve the financial burden for flood victims, with some offering extensions on overdrafts or mortgage repayment ‘holidays’ to affected customers.
Gocompare.com’s banking spokesperson, Matt Sanders, says: “It’s great to see that some banks and building societies are offering a helping hand to customers experiencing difficulties due to flooding. However, it’s important for those affected to thoroughly assess their options to establish the best ways of making ends meet in this tough time.
“For instance, though some providers are offering extensions on overdrafts or repayment holidays on loans and mortgages, it’s extremely important to remember that these are still a form of debt and you will be expected to pay what you owe back, along with any interest you may have accumulated on it.
“Before agreeing to any form of emergency aid from your bank, such as a repayment holiday or overdraft extension, be sure to find out what the interest rate and repayment schedules are to ensure that you can afford to pay it back. Being unable to meet repayments can have serious consequences and affect your chance of getting credit in the future, so it’s vital to know what you’ll be able to pay back and when. If you feel your financial situation is unmanageable, there are organisations that can offer guidance, such as Citizens Advice or the Money Advice Service.”