Self-Certification 3-month Payment Holiday Scheme – Request Form
In line with the Government guidelines, we are now able to offer a 3-month payment holiday on the basis that:
- You believe you are impacted by COVID-19 or
- For our Buy to Let mortgage customers, you believe your tenant is impacted by COVID-19
A payment holiday isn’t always the best solution if you are experiencing payment difficulties. If you would like our team to review our full suite of forbearance measures to help you, please complete an Affordability Assessment Form and forward to this office along with 3 months’ bank statements and payslips. Alternatively, contact us on 03330 148048 and speak to one of our consultants who will be happy to help. We will require these documents to be completed in order to help you.
Please submit a financial assistance request if you wish to apply for a payment holiday or payment holiday extension.
You can review the financial impact of a payment holiday using our calculator here.
If you would prefer to submit your application in writing, please print and follow the instructions on our paper application form.
Please ensure your contact details are provided so we can contact you if necessary. Please note, any discrepancies will hold this process up.
Once the 3-month payment holiday is processed, we will confirm this to you in writing. If you have any questions regarding this, please contact us on 01252 812271.
What is a payment holiday?
A payment holiday means you can stop making your mortgage payments for 3 months, so you don’t have to repay anything at all during that period. However, interest will continue to accrue and will be added to the balance of the outstanding loan. If you are able to make part of your normal mortgage payment to reduce interest charges, then you may wish to consider this option. No arrears fees will be charged to your account for the scheme duration, and we will ensure that the payment holiday does not negatively impact on your credit file.
Whilst the payment holiday will not impact your credit file, other lenders may take other information into account when making future lending decisions, for example information from your bank account statements.
Payment holidays (deferrals): what happens when they end?
We’ll be in touch before your payments are due to restart to explain what will happen next. This will include information about resuming payments and what you can do if you’re not able to.
You may find your monthly payments will increase after your payment holiday (deferral). This is because the interest has continued to accrue and there are fewer months of your mortgage term remaining for you to repay your balance. The amount your monthly payment increases will depend on your loan balance, repayment type, term and interest rate.
Resuming payments at the end of payment holiday (deferral)
We will confirm the new monthly payment towards the end of your payment holiday (deferral) to help you understand the options available, by default your payment will be reinstated.
If you are able to resume your monthly payments, they will continue from your next payment date. Please ensure your Direct Debit or Standing order is in place before the due date.
If you would rather not make the increased monthly payments, there are alternative options to repay the amount you owe, including paying the amount as a lump sum payment or making additional monthly payments over a shorter period of time. To arrange this, you can either contact us on 01252 812 271 or, via email [email protected].
Making a lump sum payment or additional monthly payments will cost you less over the remaining term of your mortgage when compared to making your increased monthly payments at the end of the payment holiday (deferral).
Request further support
If you want to extend the payment holiday (deferral) or you’re worried about being able to afford your monthly payments, we can help. You’ll need to complete the Financial Difficulty Assistance Form so that we can work with you to find the most suitable option.
Extending the payment holiday (deferral) is not the only option that is available, there are other options that can be considered depending on your individual circumstance. These might include:
- changing the way you make your payments or the date you pay
- converting some or all the mortgage balance to interest only on a temporary basis
- extending the term of your whole mortgage*
- accepting reduced payments in the short term which can be caught up at a later date
*this is a long-term option to vary the contract you have with us and will cost more over the term of your mortgage, when compared to you making your new monthly payments.
Once you have submitted the Financial Difficulty Assistance Form, we will contact you to consider all the possible ways we can help and discuss the available options suitable for your individual circumstances.
Meanwhile, you can use our Payment Holiday Calculator to help you understand the impact on you and your options.
We have also listed out a number of organisations that you may wish to contact who provide free, confidential and impartial advice.