We understand that you may be worried about Coronavirus and what it might mean for you and your mortgage. We want to reassure you that we're here to help. We have a number of policies in place to help you if you fall into financial difficulty. This help includes allowing customers to reduce or defer mortgage payments for a period of time.
Customers have until 31 March 2021 to apply to defer their mortgage payments.
Who is eligible?
The option to defer mortgage payments for up to six months in total is being made available to our mortgage customers who are up to date with their mortgage payments and are experiencing difficulty with their finances as a result of the Coronavirus.
Please note that mortgage deferrals can only be agreed for up to three months at a time, up to six months in total.
Customers will need to apply for their mortgage deferral by 31 March 2021 and the deferment must end by 31 July 2021. For example, if you apply after your February mortgage payment is due, your deferment will take effect from March 2021. This means you'll only be able to defer your mortgage payment for 5 months as the deferment must end by 31 July 2021.
For customers who are already in shortfall, arrears or financial difficulty, we will continue to work with you to review your individual circumstances and consider the full suite of forbearance options that are available.
How do I know if deferring my mortgage payments is right for me?
Before requesting to defer your mortgage payment, there are a few things you may want to consider.
You will temporarily be making no payments on your mortgage, this means your balance will not reduce but your mortgage term will. At the end of the deferred period, your monthly payment will be recalculated and may increase to ensure your outstanding balance is repaid over the remaining mortgage term.
Deferring your mortgage payments will depend on your circumstances. If you're unsure if deferring your mortgage payment is right for you, Money Advice Service have developed a number of guides, including 'A guide to coronavirus mortgage payment holidays'. This provides more information on what deferring your mortgage payment may mean.
It's important to remember, if you're currently working and able to pay your monthly mortgage payments that you continue to do so.
Also, if your circumstances change you can get in touch with us to review your options.
Important things to consider
If you have insurance with us, your cover will remain in place during this period.
The interest on your mortgage will continue to accrue throughout the deferred period and will be added to your outstanding balance. It is therefore in your best interests to pay as much as you can throughout this period to minimise the amount of additional interest that will be charged.
For an indication of how deferring your mortgage could impact your monthly payments and total mortgage balance, you can use our deferred payment calculator.
When completing our online mortgage payment deferral request you will need to self-certify that your income had been either directly or indirectly impacted by the coronavirus.
Please note: If your mortgage payment is due in the next 10 days, we may not be able to stop your Direct Debit being taken. If this happens your mortgage payment will still be deferred for the agreed period but will start from the following month.
How do I request to defer my mortgage payment?
To defer your mortgage payment, simply complete the form by clicking here.
Please note, the online form cannot be used by customers who already have a payment holiday in place. For further information, please refer to the 'What happens after the deferment period ends' section below.
What happens once I make a request?
Once we have received your request, if your mortgage payment is being deferred, we will contact you as soon as possible to confirm the change to your mortgage and what happens next. You do not need to do anything further.
Please note that we are currently facing unprecedented demand and are working through a backlog of cases. We’d politely ask that you use the website and online portals in the first instance for any queries.
If we are unable to defer your mortgage payment, we will contact you on the details provided and discuss the other options that may be available to you.
Will this affect my credit score?
Where we have agreed to defer mortgage payments, no arrears will accrue on your mortgage account and therefore no arrears will be reported to the credit reference agencies. Consequently this should not affect your credit score which is calculated by the Credit Reference Agency. However it is important to consider that companies may take into account other information when making future decisions.
Please note, if you do not come to an agreement with us and do not make your monthly mortgage payments, the amounts would be reported to the credit reference agencies in line with our existing processes. You should not cancel your direct debit before a payment holiday has been agreed, as this will be counted as a missed payment and therefore will impact your credit file.
We will contact you prior to the end of the deferred period to confirm your new monthly payment and the options that may be available to you.
What other support is available to me?
There are a number of independent organisations that can offer support during this period:
Money Advice ServiceCoronavirus support
Financial Conduct AuthorityDealing with financial difficulties during coronavirus: information for consumers
There are also a number of other organisations available to help, simply visit our payment difficulties page to find out more.