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Covid-19 Outbreak: How To Arrange A Mortgage Holiday

Published on Monday 06 April 2020 in Van News

Covid-19 Outbreak: How To Arrange A Mortgage Holiday

 

If you're a homeowner & struggling to keep up with your mortgage payments during the Covid-19 outbreak, the best advice is to speak to your bank because they've all agreed to offer help to their customers by providing at least a 3-month mortgage holiday agreement if it's needed. If you'd like to go into that conversation a little more prepared, take a look at the information below.

 

What Is A Mortgage Holiday?

A mortgage holiday is simply a break in your mortgage payments for an arranged period that has to be agreed with your bank. Let's give you an example: if you have 20 years & 3 months of payments left, you'll be able to agree with your bank to not pay for 3 months & spread the cost over the next 20 years, or extend your mortgage by an extra 3 months.

Our advice is to talk to your bank to find out the terms of any mortgage holiday agreement before deciding it's the right thing to do.

 

REMEMBER: Do not just cancel your mortgage payments or direct debits, you must arrange a mortgage holiday with your provider. Cancelling mortgage payments without arranging a holiday with your bank will be counted as a late payment and will appear on your credit file.

 

Is My Bank Offering A Mortgage Holiday?

Following an agreement with the Government, all banks should be offering mortgage holidays to existing customers. Contact your bank to find out what kind of support they can offer you.

Each bank is offering different ways to facilitate a mortgage holiday from increasing the amount you pay each month after your holiday is complete, while others are simply extending your mortgage terms.

 

How Is My Bank Helping Arrange Mortgage Holidays?

Banks are also making it as easy as possible for customers to request mortgage holidays. For example, Vanarama team member Daryl arranged a mortgage holiday with his bank for the months of April, May & June simply by filling in an online form. It took a few moments to process before he was notified that his payments will start again in July and will only be going up by around £10-15 for the rest of his mortgage term.

Below is a table which shows the major banks offering mortgage holidays, how they are facilitating them & how to apply with links to their application pages (where possible).

 

Bank

Impact Of Mortgage Holiday

How To Apply

Bank of Scotland

Increased monthly payments

Online

Barclays

Longer mortgage term

Online

Coventry BS

Flexible

Online

Halifax

Increased monthly payments

Online

HSBC

Speak to bank

Online

Lloyds

Increased monthly payments

Online

Nationwide

Increased monthly payments

Online

NatWest

Increased monthly payments

Online

NRAM

Increased monthly payments

Phone: 0330 159 4850

RBS

Increased monthly payments

Online

Santander

Increased monthly payments

Online

 

Contact The Covid-19 Small Business Support Team For More Information

If you have any questions about mortgage holidays or any other financial support available during the Covid-19 outbreak, please call the Covid-19 Small Business Support Team for free on 0808 196 3900 (8:30am - 5:30pm, Monday-Thursday. 9am - 5pm, Friday). Or, take a look at our Covid-19 Small Business Support information hub.

 

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