Worried how coronavirus could affect your mortgage payments, loans and investments? This step-by-step guide gives you plenty of tips to ensure you have key information at your fingertips

THE spread of coronavirus is causing many big financial worries for people, on top of health concerns.

People’s pensions, incomes and insurance could all be affected. For consumers who are concerned about their immediate financial situation, getting help early could be key, so it’s important to talk to your provider sooner rather than later. Free-to-use debt help charities may also be able to help. You may find there’s more help out there than you realised. In the meantime, here is a look at how your finances could be affected by coronavirus and what help may be available.

What if I’m struggling to keep up with mortgage repayments because of coronavirus, or I need to get my hands on money that’s locked away in a savings account quickly?

Many banks and building societies have announced the extra help that they will offer to customers with coronavirus.

Several lenders have said this could include mortgage payment holidays for homeowners, or people with other types of debt for certain periods of time, while they get back on their feet. Some savings providers will also allow people to break out of fixed-term savings accounts without facing penalties, if customers affected by coronavirus are urgently in need of cash. Meanwhile, HM Revenue and Customs (HMRC) has a set up a phone helpline to support businesses and self-employed people concerned about not being able to pay their tax due to coronavirus. Call 0800 0159 559.

Would taking a payment holiday with a bank dent my credit score?

Kelli Fielding, managing director of consumer interactive at TransUnion, one of the UK’s main credit checking companies, explains: “Generally, an agreed mortgage payment holiday shouldn’t have a negative impact on a consumer’s credit score with TransUnion but they (the borrower) would need to clarify with the lender how it would be recorded on their credit file.

What about my pensions and investments?

Nathan Long, a senior analyst at Hargreaves Lansdown, says savers should think about the longer term.

“It’s important to look past short-term fluctuations when saving for long-term targets like retirement, even though fresh news could see more variation in your pension value,” says Long.

But what if I’m close to retirement?

Long does say those who are closer to retirement may find themselves more vulnerable to stock market falls.

“The first step is to be brave and check how your pension is faring,” says Long. “Many pension plans actually start de-risking your investments as you approach the retirement age you’ve set, which could mean your pension has fallen less than you’ve feared.”

How about travel insurance?

On March 17, the Foreign and Commonwealth Office (FCO) advised people against all but essential travel worldwide. The advice was applied initially for a 30-day period.

Several insurers had already temporarily paused the sale of travel policies. Bear in mind that some new policies may carry exclusions related to coronavirus.

The risks of getting your insurance details wrong

Insurance provides a financial lifeline just when you need it most but giving incorrect details when taking out policies can lead to costly mistakes.

Some customers may have lost out on their claims, in some cases having to pay tens of thousands of pounds due to not being fully covered, according to the Financial Ombudsman Service (FOS). The service, which resolves complaints from consumers about financial firms, is highlighting the problems people can face when they find that they are not fully insured for what they need. Hundreds of people bring complaints to the ombudsman service every year because they are not satisfied with how their insurer has dealt with a claim where not being fully insured, also known as underinsurance, is an issue.

To avoid costly mistakes, the FOS has these tips:

Do: Read the small print to make sure you know what your policy does and doesn’t cover; talk to your insurer if your circumstances change; for buildings and contents insurance, get a full estimate of the value of the items you want to cover.

Don’t: Always go for the cheapest deal as this may not necessarily cover what you want; assume you need the same level of cover year after year; be tempted to not give your insurer the full information they require.