Mortgage Repayment Deferral

We know that you might have concerns about your finances at this time, and a payment deferral on your mortgage may give you some flexibility.

How can I apply for a payment deferral on my mortgage?

Residential Mortgages

For residential mortgages, the payment deferral will apply if you tell us that you’ve been affected – directly or indirectly – by Coronavirus.

It's important that you understand the impact that a payment deferral will have on the amount you'll pay on your mortgage and to see this, simply click on the Mortgage Payment Deferral Calculator button below.  If once you’ve reviewed this, you believe that a Mortgage Payment Deferral is right for you, you can apply using the same link.  To use the Mortgage Payment Deferral calculator you'll need your account number, mortgage balance, current interest rate and the remaining term on your mortgage.  If you haven't got this information, please call us on 0800 220 568 and we'll help you with that.

Buy to Let Mortgages

For Buy-to-Let mortgages, a Mortgage Payment Deferral will apply if you’re up to date with your payments, you’re not in arrears and you tell us that your tenants are having difficulty in paying their rent due to Coronavirus. Please make sure that if a Payment Deferral is agreed and no payments have to be made for up to 3 months, a similar arrangement is applied by you to your tenant. 

It's important that you understand the impact that a payment deferral will have on the amount you'll pay on your mortgage and to see this, simply click on the Mortgage Payment Deferral Calculator button below.  If once you’ve reviewed this, you believe that a Mortgage Payment Deferral is right for you, you can apply using the same link.  To use the Mortgage Payment Deferral calculator you'll need your account number, mortgage balance, current interest rate and the remaining term on your mortgage.  If you haven't got this information, please call us on 0800 220 568 and we'll help you with that.

When should I apply?

You may not need to defer your repayments immediately and you should carefully consider when the time is right for you to do this. If you decide to go ahead, interest will accrue in the deferral period and you’ll need to make up deferred payments in the future. Whilst in respect of any payment deferral, a worsening status will not be recorded on a customer’s credit file, lenders may take into account other information when making future lending decisions, including, for example, information provided by applicants or bank account information.

What does a Payment Deferral actually mean for me?

Whilst your monthly payment does not have to be made during the Payment Deferral period, you will still owe that money to us and interest will be charged and added to your account at that time. Therefore, if you are able to make part of your normal monthly payment to reduce interest charges, you should consider this to make sure you don’t pay more interest than you need to over the term of your mortgage.

Is taking a payment deferral the right option for me?

It is very important to remember that this is a deferred payment which means you will be suspending some, or all of your mortgage payments for a set amount of time. You will still owe these payments, and interest will continue to be charged throughout this time which will need to be paid at a later date.

Your mortgage balance will increase as a result of a Payment Deferral and therefore the interest you pay will also increase. Additionally, your payments after the deferral will usually increase. 

What happens when the Payment Deferral ends?

We’ll contact you before the end of your Payment Deferral and together we’ll come to an arrangement to repay the interest charges incurred and to make up payments that have been deferred.

Usually it makes financial sense to pay these off as quickly as possible if you are able to.  If the interest and deferred payments are repaid over the remaining term of your mortgage, this will generally lead to you paying much more than if you had paid them off over a shorter time.

We’re here to help

If you’re already experiencing financial difficulty and are behind on your mortgage repayments, there may be other steps we can take to help you. Please talk to us about how we can help.

When you’re ready to apply for a Payment Deferral please get in touch by following the link below or by calling us on 0800 220 568.

We might take a bit longer to get to you at the moment as we work hard to help all of our customers in these unprecedented times.  For this reason, if you’re not ready to use the Payment Deferral just yet, please wait until you’re ready to apply before getting in touch.

Thank you for your patience and best wishes for you and your family’s safety

 

Mortgage Repayment Deferral Calculator 

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