FAQs

We’ve pulled together a list of our most frequently asked questions which may provide the information you need (as of 26th May 2020).

Mortgage payment breaks

  • What is a mortgage payment break?
    A payment break is when you temporarily stop paying all or part of your monthly mortgage payment.
     
    Payment breaks are used to address short term cash flow problems. It is important to remember that you still owe that money and the interest on your mortgage still accrues during a payment break.
     
    Taking a payment break will not impact your credit file.
     
    If you think you’ll struggle to make you monthly mortgage payments because of COVID-19, we can help by offering a payment break of up to 3 months.
     
    The payment breaks we offer align with the guidelines set out within each relevant jurisdiction. Within the UK we’re following UK regulatory guidelines by offering payment breaks of up to 3 months. Outside of the UK this may differ, so it’s important to check what options you have available to you.
  • Can I have a payment break?
    We will be able to offer you a payment break up to 3 months if you are experiencing or likely to experience short term issues with your finances as a result of COVID-19. You can apply for a payment break by completing a payment break form.
     
    Please note that by submitting an application you are confirming that all parties to the mortgage consent to a payment break.
     
    You’ll need to catch up on the deferred payments after the payment break; we’ll contact you nearer the time to discuss your options.
     
    Please call us if your payment is due within the next 7 days and you need this support immediately.
  • I am a Buy to Let landlord, can I have a payment break?
    If you are a Buy to Let landlord, you will need to self-certify that your tenant’s income has been impacted by COVID-19. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.
  • Is a payment break right for me?
    It’s important to remember that a payment break is a temporary break from your mortgage payments to help you through these uncertain times. To make sure it’s the right thing for your current situation, there are a few things you need to consider before applying:
     

    1. At the end of the payment break we will add the deferred payments to your mortgage and then your monthly payment will increase. The total amount of interest you pay over the term of the mortgage will also increase.
       
      However, there are other options available to you to repay the missed payments, for example by making a lump sum payment.
       
      We will write to you with more details near the end of your payment break. You will then have the opportunity to agree how to catch up on the deferred payments.
    2. Currently, we offer up to a 3 month payment break. The most appropriate time for you to have a payment break will depend on your personal circumstances.
    3. If you currently have a payment shortfall (arrears) on your mortgage, please call us so we can discuss your options.
  • How will taking a payment break affect my mortgage?
    You won’t have to pay anything during the payment break. However, interest will still be charged at the current rate on your outstanding mortgage balance.
     
    At the end of the payment break we’ll automatically add the deferred payments to your mortgage which will increase your monthly payment. There are other options available to you and we’ll write to you near the end of your payment break with more details.
     
    Here are a few examples to show the impact of taking a 3 month payment break for a repayment and an interest only mortgage*:
     
    Repayment mortgage
    We’ll spread the amount over the rest of your mortgage term. This will increase your monthly payment and you’ll pay more interest overall.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £707 £795
    New monthly payment after a 3 month payment break £728 £808
    Monthly increase £21 £13
    Total amount to pay without a payment break £84,842 £190,764
    Total amount to pay with a 3 month payment break £85,119 £191,411

     
    Interest only mortgage
    The interest not paid during the payment break will be added onto your capital balance. This means you’ll be charged interest on a higher balance for the rest of your mortgage term. You’ll also need to make sure the repayment strategy you have in place is enough to repay the higher balance when your mortgage ends.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £156 £312
    New monthly payment after a 3 month payment break £157 £314
    Monthly increase £1 £2
    Total amount to pay without a payment break £93,750 £225,000
    Total amount to pay with a 3 month payment break £93,866 £225,466

     
    * These examples are for illustrative purposes only and we’ve made the following assumptions:

    • All interest rates are of equal length
    • Interest is calculated and added monthly
    • Only one main account (no additional borrowing)
    • There is no change in interest rate that would recalculate the monthly payments
    • There will not be any changes to the mortgage which would result in a recalculation of the monthly payment e.g. changes to the product term, type (i.e. interest only to repayment) or change of borrowers.
  • How can I repay the money I owe from the payment break?
    At the end of the payment break we’ll automatically add the deferred payments to your mortgage so they’re repaid by the end of the mortgage term. There are other options available including:
     

    • Repaying in full at the end of the payment break
    • Repaying the deferred amount over a shorter period (rather than the remainder of the term)
    • Extending the mortgage term (repayment mortgages only)

     
    Repaying your deferred payments over an agreed period will increase your standard monthly payment.
     
    We’ll write to you near the end of your payment break with more details. The option you choose will depend on your individual circumstances.

  • I need a payment break but my payment is due soon, what should I do?
    If your payment is due within the next 4 days and you are unable to maintain the payment, you should cancel your Direct Debit as we may not have time to process your application. We will then process your application to include the payment missed. Your credit file won’t be affected when you cancel your Direct Debit.
     
    If you’re able to make the payment due, we can start the payment break from your next payment date.
  • I was already in arrears before COVID-19 and now I am in greater financial difficulty, what should I do?
    A payment break is available for customers experiencing short term financial difficulties caused by COVID-19 but we also offer a range of other measures to support you. Please call us to discuss what options are available to you.
  • I /my family are self-isolating, should I contact you?
    If you are experiencing, or expect to experience, financial difficulty due to COVID-19 you can apply online for a payment break. Alternatively please contact us to discuss your situation and options available to you.
  • I am not directly impacted by COVID-19 at the moment but have concerns about my mortgage payments if I am impacted. What should I do?
    This is a worrying time for everyone so we will help all our customers who need it. We offer a range of support including payment breaks where appropriate.
     
    If your circumstances change and you are experiencing financial difficulty due to COVID-19 please call us. Alternatively you can apply online for a payment break.
  • When will I know I’m getting a payment break?
    We’re prioritising requests where the payment is due within the next seven days. We’ll be in touch once we’ve dealt with your request. Please contact us if you have not heard from us and your payment is now due.
  • How can I extend my payment break?
    Please don’t do anything yet. We’re awaiting FCA guidance about payment break extensions. As soon as we have more information on next steps, we’ll update you here so please check back regularly.
  • I cancelled my Direct Debit when I requested a payment break. Do I need to do anything?
    We’ll send you a new Direct Debit form before your payment break finishes or you can download a form. Just complete and return the form to us and we’ll do the rest. If you haven’t received or completed a form and there are less than 5 days until your payments are due to start again, please call us straight away.
  • I submitted my request but my Direct Debit was collected. What should I do?
    You can request a refund of the payment and we will back date the payment break if needed. Alternatively the payment break can start from your next payment date. If you were unable to make the payment, we will back date the payment date request to include the missed payment.
  • What do I need to do if I pay my mortgage by Standing Order and have a payment break approved?
    You should cancel your Standing Order for the duration of the payment break. You’ll then need to set it back up when your payments are due to restart. Depending on which option you choose to pay back the deferred payments, you may need to increase your Standing Order. We’ll write to you near the end of your payment break with more information.
  • Do I need to contact you at the end of the payment break?
    We’ll write before your payment break ends to explain what options you have to repay the deferred payments. Please give us a call if you haven’t received our letter and it’s less than 5 days before you’re due to start paying again.
  • What if I still can't afford the payments when they are due to start again?
    We’ll write to you when you’re due to start making payments again. If you think you’ll be unable to afford this by the time you get our letter, please call us to talk through how we can continue to support you.
  • Can I switch to a new rate when I have a payment break in place?
    If you’re on a payment break, you can apply for a new deal by giving us a call.
  • Can I make an overpayment or lump sum payment (part redemption), during a payment break?
    You can make these payments online, but first you will need to let us know how you want to repay the outstanding amounts and start making payments again. If you want to contribute towards the deferred amount, let us know.
  • Can I change my mortgage term or repayment type when I have a payment break in place?
    You can if you’re applying for a new rate at the same time or it’s unrelated to your payment break. We’ll go through the details when you call us. We’re unable to accept requests to extend the mortgage term if your mortgage is on an interest only basis.
  • Can I apply to change the people named on my mortgage during a payment break?
    You can add a borrower and potentially replace a borrower. We will need to understand how your current and future financial position has been impacted before we would make any Offer of Loan. Any application will be subject to meeting our lending criteria.
     
    If you want to remove a borrower you must wait until the payment break has ended before you can request this. Alternatively, if you no longer need your payment break, we can cancel it so that you can apply.
  • Can I change the type of mortgage I have when I have a payment break in place? (e.g. Buy to Let to a residential mortgage or a Self Cert to a standard mortgage)
    You must wait until the payment break has ended. Alternatively, if you no longer need your payment break, we can cancel it so that you can apply to change your mortgage type. Any application will be subject to meeting our lending criteria.
  • Can I apply for further borrowing during a payment break?
    You can only apply for a further loan (additional borrowing), once your payment break has finished. Alternatively, if you no longer need your payment break, we can cancel it so that you can apply. Further loans are subject to you meeting our lending criteria.
  • Can I apply to move home when I have a payment break in place?
    You can apply to move your mortgage to a new property if there is no change in the amount you want to borrow. We will need to understand how your current and future financial position has been impacted before we would make any Offer of Loan. Any new application will be subject to meeting our lending criteria.
     
    If you want to borrow more to buy a new property, you must wait until the payment break has ended before you can apply. Alternatively, if you no longer need your payment break, we can cancel it so that you can apply.
  • I have a payment break in place and am in the process of switching my mortgage account with you (re-arrangement). What happens to my payment break when I complete?
    If your 3 month payment break hasn’t ended before the new mortgage completes, you can set up a new payment break for the remainder of the time if you need it. Please contact us to set this back up.
  • I still have a question.
    We will help everyone impacted by COVID-19 but would like to prioritise customers whose payments are due within 7 days. For immediate financial support, please call us so we can provide you with the help you need. If your payment is not due within 7 days, please call us closer to your payment date or apply for a payment break.
 

Mortgage Offer Extensions

 

Mortgage Applications for furloughed customers