If you are worried about your loan repayments as a result of coronavirus (COVID-19), we may be able to help provide some peace of mind during this challenging time.
If you think you'll struggle to make your monthly loan payments, we may be able to offer you a short-term payment holiday. This means you can temporarily put your repayments on hold, for up to 3 months.
It's free to apply and it won't affect your credit rating, so there's one less thing to worry about.
Who can apply for a loan payment holiday?
You can apply if you meet all of the following:
- Your finances have been affected by coronavirus. For example, you can't work due to self-isolation, have had your income reduced due to being furloughed, or new childcare responsibilities.
- Prior to March 2020 you were up to date with your monthly loan repayments, and,
- The account is held in your name (you're not an authorised name on the account).
- If you were behind on your repayments prior to March 2020, please see our Payment Difficulties page.
Before you apply
It's important to remember that a loan payment holiday is a temporary change to your normal monthly payments, to help you out in the short term due to Coronavirus (COVID-19).
Things to consider before applying, to make sure a loan payment holiday is right for you:
- You will have to leave your Direct Debit active for the months you are on the plan.
- If you have a standing order set up to pay your monthly instalment, you must make sure it's set up to pay £0 for the term of your payment holiday. You must then readjust it at the end of your payment holiday for your normal monthly payment amount.
- During the plan, no additional interest will be charged, and your credit file will not be negatively impacted.
- Stopping your repayments will mean it will take you longer to repay your balance. This means you will be paying your loan for longer. For example, if your loan was due to finish in January 2021 and you take a 3 month payment holiday, your loan will now finish in April 2021.
- We can only offer a payment holiday up to a maximum of 3 months. The best time for you to take one out will depend on your personal situation.
- At the end of the payment holiday, your monthly payment will go back to the agreed sum shown in your loan agreement. The amount of the payment will always be shown on your online statement. If, at the end of the payment holiday, you are unable to resume your payments, you must contact us immediately.
Apply for a loan payment holiday
We'll try to let you know whether we've accepted your application straight away, however, we may take longer to process your application during busy periods, but we'll continue to work as fast as we can. As always, supporting you is our top priority.
If you are accepted for a payment holiday, we'll do our best to start your payment holiday from the date your next payment is due. However, if your next payment is due in the next few days, your payment plan might start the following month. Don't worry we'll let you know when your payment holiday period begins.
Please call us on 0800 028 9321 and select option 3.