Coronavirus (COVID-19) – Repayment Holidays

If you are able to maintain your mortgage payments, you should continue to do so. However, if you have been financially impacted by COVID19 and this is impacting your ability to meet your monthly mortgage payment, then you are able to request a payment holiday up to a maximum of 3 months as long as you are currently up to date with your mortgage repayments without any impact on your credit file. If you are currently in arrears, please contact us on 08001382402 (open 9am - 5pm weekdays and 9am - 1pm Saturday), to discuss alternative solutions.

If you choose to take a payment holiday you need to be aware that the interest usually charged within your monthly payments will be added to the balance of the mortgage. Your account will be re-calculated at the end of the instalment break and written confirmation will be provided. The payment will be calculated at that time using your higher balance and spread throughout the remaining term. It is very likely your monthly payments will increase.

If you have elements of your mortgage account on interest only you need to be aware that these balances will increase to cover the amount of accrued interest that has been added due to the missed payments.

For the interest only elements of your mortgage the recalculated monthly payments will continue to only pay off the interest and will not reduce your increased outstanding balance. It is important, therefore, to check regularly that your savings plan and other investment plan that you may have in place is on track to repay this mortgage at the end of its term.

By requesting a payment holiday, you are confirming:

• You have been financially impacted by COVID19
• You want to proceed with the payment holiday
• You will be able to start to repay your mortgage once the payment holiday ends.

If your mortgage is a buy to let and we agree a payment holiday with you because your tenant is unable to pay the rent then the benefit of the payment holiday should be passed onto the tenant.

If you hold more than one account with us, please contact us on 08001382402 (open 9am - 5pm weekdays and 9am - 1pm Saturday).

Your payment holiday will be agreed in writing subject to approval. If you still require assistance with your mortgage once the payment holiday ends, please contact us on 08001382402 (open 9am - 5pm weekdays and 9am - 1pm Saturday).

Although Payment Holidays can help in the short term, if you have a repayment mortgage at the time of the payment holiday the interest will continue to be added to your mortgage and the missed payments will need to be made up over the remainder of the mortgage term, meaning that your contractual monthly payment will increase.

If you have made over payments to your mortgage that have not been processed as a capital repayment it is expected that over payments are utilised before a payment holiday will be agreed.

You may be eligible to apply for a Payment Holiday if:

• Your mortgage payments are up to date
• You have been directly or indirectly impacted by Covid-19

If your account is in arrears, you may be eligible but we would need to talk to you to assess this.

Although we try to help as many customers as possible, there will be some cases where a payment holiday may not be available to you.

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