The Financial Conduct Authority (FCA) confirmed that all mortgage payment holidays or payment deferrals ended on 31 July 2021. Our frequently asked questions below detail how we can support you if you are affected by the Covid-19 health emergency.
I am affected by Covid-19, can I have a payment holiday?
The last date you could apply for a payment holiday was 31 March 2021, and the payment holiday had to end by 31 July 2021.
If you are struggling to pay your monthly payments, please contact us. Our team will ask you a range of questions about your financial circumstances and look at the options we have available that best suit your situation. We have a range of additional support options available including, where appropriate, a temporary suspension of your monthly payment or a bespoke payment plan. These options will be discussed with you in full, including the impact of these options on your credit file.
I am struggling financially, how can you help me?
Please call our team if you are struggling to pay your monthly mortgage payments or you are worried you might struggle in the future. We have a range of additional support options available including, where appropriate, a temporary suspension of your monthly payment or a bespoke payment plan. These options will be discussed with you in full, including the impact to your mortgage and credit file.
I’ve not paid my monthly mortgage payment, what should I do?
Please call us if you have been unable to make your monthly payment or are worried that you may not be able to afford your next payment. Our team are here to help you and will be able to talk to you about a range of support options available to you, including where appropriate, a reduction or temporary suspension to your monthly payment.
I’ve already not paid several monthly payments and concerned that my situation is not going to improve; will you repossess my home because of my payment arrears?
We always consider repossession action to be the last resort, but it is important that you speak to us as soon as possible. Our team will ask you a range of questions about your financial circumstances and look at the options we have available that best suit your situation. We have a range of additional support options available including, where appropriate, a temporary suspension of your monthly payment, a temporary switch to interest only, or a bespoke payment plan.
Should you feel that remaining in the property is not right for you and may be causing you financial distress and you would like to discuss how to resolve the position, we can help and would encourage you to contact us on 0333 300 0939.
Are you still charging arrears management fees?
No. We are temporarily waiving arrears management fees for all customers.
What was a Covid-19 payment holiday?
A payment holiday was introduced by the Government at the start of the Covid Pandemic to support you if you were directly impacted and would financially struggle. Whilst it was called a payment holiday, it was a way to defer your monthly payment until a later date, but you still owe the money, so those payments would be payable in the future. During a payment holiday your account was still charged interest, so the longer the payment holiday you took, the greater the increase in the interest you would pay over the life of your mortgage.
How long could I have had a payment holiday for?
Payment holidays were granted for a maximum of six months, up to three months at a time, and had to be requested by 31 March 2021. All payment holidays had to an end by 31 July 2021.
What changes did you make to help me make up the deferred monthly instalment(s) after my payment holiday?
We would have reviewed your circumstances at the time to find the best option. For example, we may have considered:
Will a payment holiday have had a negative impact on my credit record?
If we agreed a payment holiday with you because of the Covid-19 pandemic before the 31 July 2021, then we will have continued to report your mortgage account in the same position it was at the point the payment holiday was agreed.
Whilst the payment holiday on your mortgage will not affect your credit record, financial services firms may consider information other than your credit record when deciding whether they will provide you with credit. As a result, the payment holiday could affect your ability to get a new mortgage or take out other forms of borrowing in future, for example car finance or credit cards.
Were payment holidays available for Buy to Let customers?
Yes. If Buy to Let customers and their tenants were impacted by Covid-19, a payment holiday would have been an option available up to the 31 March 2021. Payment holidays were provided on the understanding that this relief was passed on to impacted tenants.
Where we became aware that the benefit of the payment holiday was not being passed on to impacted tenants, we may have withdrawn the payment holiday.
How has taking a payment holiday impacted my mortgage?
A payment holiday meant that you will not have had to pay your monthly mortgage payment for an agreed period; the monthly payment was deferred to a later date. However, you still owe the money and interest continued to accrue whilst the deferred payments remain unpaid. The original total cost of your mortgage also increased as you have not paid your monthly payments on schedule which meant your overall mortgage balance did not decrease as expected.
Whilst a payment holiday that was agreed up to the 31 July 2021 would not impact your credit score, it may have impacted your ability to borrow in the future. Some lenders may take account of the payment holiday when considering mortgage applications or requests for further borrowing.
What will a payment holiday look like on my Annual Mortgage Statement?
This will vary for different customers and would depend on when you requested the payment holiday and if we had to make any additional adjustments to your account. Please view this guide to understand How to identify a payment holiday on your Annual Mortgage Statement
