Flood help? Check out what the bank’s offer may really end up costing you
Some have offered extensions on overdrafts or mortgage repayment ‘holidays’ to affected customers, but accepting the offer could come with a cost.
“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,” warned Matt Sanders, banking expert at GoCompare.
“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 are concerned at the financial cost of the floods and how you will cope, it could be worth talking to money experts at your local Citizens Advice Bureau.
Meanwhile, if you’re worried about potential flood damage to your home, the Financial Services Ombudsman advises there are things you can do to protect yourself.
Speak to your home insurer to find out what you’re covered for. Even if you have to pay higher premiums, it pays to know you’re covered if something goes wrong.
Ask your insurer if they have any tips or requirements for preventative measures that you could take.
Keep copies of your insurance documents in a safe place. Scan and save the documents too in case the originals are damaged.
Take pictures of your property to show the condition it was in before flooding. This could help you out in a claim.Tagged in: banks, building societies, floods, insurance, overdraft extension, payment holiday, small print
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