Covid-19 FAQ – After My Repayment Holiday

What will happen when my payment holiday comes to an end?

We will write to you before your payment holiday is due to end. We will confirm the amount of the new payment and when your repayments will start. If you have cancelled your Direct Debit please call us on 0345 8400 244 and we will be happy to set up a new instruction. If your payment is due in the next 21 days, you may need to make alternative arrangements for this payment which we can help you with over the telephone.

If you are unable to make these new repayments we have a range of options to help you including an extension to your payment holiday period

Will I be able to extend the payment holiday?

All payment holidays needed to end by 31st July 2021. Further payment holidays are no longer available, but if you are struggling to make your monthly payments, please contact us on 0345 8400 244 and we discuss how we can help.

Will my Direct Debit continue to work as before?

If you had an active Direct Debit in place before the payment holiday and have not cancelled this with your bank, you do not need to do anything. We will start to collect the new payment amount on your next due date as confirmed in the letter we send you before the end of your payment holiday.

I cancelled my Direct Debit before the payment holiday began, can I start this again?

You will need to set up a new Direct Debit instruction which you can do by calling our servicing team on 0345 8400 244. If your payment is due in the next 21 days, you may need to make alternative arrangements for this payment which we can help you with over the telephone.

What happens if I can’t afford to make my monthly payments after my Payment Holiday/Extension?

We are here to help and want to make sure that your monthly repayments remain affordable and can be sustained. Please call us on 0345 8400 244 if you are struggling to make payments. You can also find useful information in our Money Worries section.

COVID-19 has impacted my employment

We appreciate the Coronavirus Pandemic has had a big impact across the whole country and will have impacted individuals in different ways. If your ability to make your loan payments has been impacted in anyway, please call our servicing team on 0345 8400 244 so we can discuss how we can help. You can also find useful information in our Money Worries section

Is there an alternative instead of adding the missed payments to my balance

Instead of adding the payment holiday payments to your outstanding loan and recalculating the new payments, we may be able to look at different repayment options. Please call our servicing team on 0345 8400 244 so we can discuss the most appropriate option for your circumstances.l range of repayment options available you will need to contact us in advance of your first due payment, following the end of your payment holiday.

What options do I have if I can’t afford an increase to my monthly payments?

If you do not want us to automatically capitalise the deferred payments and accrued interest over the remaining term of your mortgage there are other repayment options available that could be considered, for example:

Full repayment of the deferred amount and accrued interest as a single lump sum at the end of the payment holiday period

  • You can choose to make a lump sum payment to repay the deferred amount and interest accrued during the payment holiday.
  • If you choose this option, you will still pay more interest than if you had not taken a payment holiday. However, you will pay less interest than if you choose any of the other options as the balance on which you are paying interest will be lower if the deferred payments and accrued interest are repaid immediately.

Repayment of the deferred amount and accrued interest over a shorter period

  • Capitalisation spreads the amount over the remaining term of your mortgage however, you can choose to make additional payments to repay the deferred amount and interest accrued during the payment holiday over a shorter period.
  • If you choose this option, you will still pay more interest than if you had not taken a payment holiday. However, you will pay less interest than if you choose full ‘capitalisation’ and pay over the full remaining term as the balance on which you are paying interest will reduce quicker.

Extending your mortgage term

  • You could add the deferred payment amount and interest accrued during your payment holiday to the end of your existing mortgage term, leaving your current contractual payment amount unchanged.
  • This will mean that you will pay more interest over the term of your mortgage and will extend your mortgage duration beyond your current term end date.
  • Interest will continue to be applied, and we will continue to collect payments, beyond your current term end date until the mortgage is repaid in full.

To agree an alternative payment arrangement, we may need to ask you additional questions regarding your financial circumstances and discuss the effects of these options with you before agreeing a suitable and affordable payment arrangement.

If you would like to discuss the full range of repayment options available you will need to contact us in advance of your first due payment, following the end of your payment holiday.