Important Information

FAQs for those concerned about meeting next month’s mortgage payment

What is a mortgage payment holiday?

A mortgage payment holiday is a deferral of your monthly mortgage payment. You are able to take a break of up to three months if your finances have been impacted by coronavirus.

Once the agreed mortgage payment holiday has finished, you will be sent a letter confirming your new monthly payments, which are likely to have increased. This is because interest on your mortgage will continue to be charged during the period of deferral and your total mortgage balance will increase.

Therefore, if you’re worried about meeting your long term financial needs then deferring the payments / taking a payment holiday may not be the best option for you. If you’re already in arrears or facing long term difficulty it’s really important you talk to us before applying for a payment holiday.

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Do you have a payment holiday policy in place for borrowers who cannot make their mortgage payments due to coronavirus?

If you are worried about meeting your mortgage payments, we can offer a variety of solutions, including payment holidays. The easiest way to request a payment holiday is online. You can also call us on 0800 952 0615.

If you’re worried about meeting your long term financial needs then a payment holiday may not be the best option for you. This is because during the payment holiday period interest will continue to be charged and your mortgage balance will increase. Therefore, if you’re already in arrears or facing long term difficulty it’s really important you talk to us before applying for a payment holiday.

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How long can payment holidays last for?

The option of a payment holiday for up to three months is available for customers who are experiencing issues with their finances as either a direct or indirect result of coronavirus.

You must be up-to-date with your payments to be considered for a payment holiday. If your account is in arrears you may still be eligible but we will need to talk to your to assess your circumstances.

If you haven’t yet taken a payment holiday you will be able to apply up to 31st October 2020 for a payment deferral of up to three months.

If you have already had a payment holiday but you’re still experiencing difficulties paying your mortgage due to coronavirus, you can request a further payment holiday for up to three months. You will receive a letter from us which will arrive within 15 days of the payment holiday end date. This letter will outline the impact of your original payment holiday and the other options of support available to you. If you can afford to re-start your mortgage payments it’s in your best interests to do so.

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Once the payments are rolled onto the main balance, will the term be automatically extended or the monthly payments increased?

Customers will still owe the money where a payment holiday has been granted and interest will still accrue, so if you are able to make part of your normal mortgage payment to reduce the money you owe or your interest charges then you should consider doing so.

At the end of the original three month payment holiday we will recalculate your monthly payment based on your outstanding mortgage balance and remaining term. It is very likely your payments will increase particularly if you have a shorter term left on your mortgage.

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My mortgage payment holiday is ending soon, what should I do?

If you have taken a mortgage payment holiday, you will receive a letter in the post from us which will outline all the options available to you. These letters are being issued a month before the payment holiday is due to end, but allowing for any postal delays, we would expect the letter to arrive 15 days before your next payment is due. To ensure our contact centres can support those customers who need it most, you do not need to contact us unless you have not received a letter and your payment holiday is due to end within the next two weeks.

The letter will confirm:

• Your mortgage payment holiday end date
• Your new monthly payment and how it has been calculated
• Your projected mortgage balance at the end of the payment holiday

It will also outline what next steps you can take, including what to do if your employment status has changed, if you think you might have difficulty making your next payment or if you feel a payment holiday wasn’t the best option for you and you would like to pay back the missed payments by a different means.

Throughout the letter, contact numbers are listed to ensure you can speak to the right department to discuss your chosen next steps. If you can afford to re-start your mortgage payments it’s in your best interests to do so.

When you have come to the end of your existing payment holiday and received this letter you’ll be able to apply for a further payment holiday up to three months online if you still cannot afford your monthly payments.

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Understanding the impact of your payment holiday

If you’re applying for a further payment holiday or you’re applying for the first time it’s really important you understand the impact of payment holiday you’ve already taken on your future payments and what a further payment break will mean for your mortgage. You can either call us on 0800 952 0615 and we can provide you with an estimated illustration or you can use our calculator within the online mortgage payment request form. Please note the figures we show you are based on some assumptions, such as you having only one interest rate on your mortgage. If you have multiple parts the calculator will assume all the parts have the same interest rate and term as well as repayment type. If you have more than one interest rate or term, you can check if this is the case on your latest mortgage statement or checking your mortgage account online, you should use the following when you do your calculation:

• The highest interest you’re paying
• The shortest term you have
• Tick the repayment type with the highest balance (if part Interest Only and part Repayment)
• Input the shortest term remaining

If you would like us to assist you with the illustration, call us on 0800 138 2402 . The payment the calculator will give you is based on the above assumptions, the accuracy of the information you provide and therefore may differ to the actual payment calculated at the end of the payment holiday.

If your current mortgage payment holiday has ended, you can apply for a further payment holiday below. Please note: If you have a main mortgage account number and one or more linked accounts please note that you will need to complete a separate payment holiday request for each account number where a payment holiday is required.

Mortgage payment holiday request form

Please note: If you are an N&P Commercial Mortgages customer and would like more information on how to apply for a payment holiday online, please click here and use the YBS Commercial Mortgages form so your request can be sent directly to the correct team.

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How quickly can a decision typically be reached?

We are doing our best to support all customers during these unprecedented times. However, the spread of COVID-19 is likely to have an impact on staff levels and applications will be dealt with as quickly as possible. At this time, please only contact us if you have concerns about immediate payment. This ensures we can help those who are in most need.

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What evidence will be required to qualify for a coronavirus payment holiday?

You don’t need to provide any documentation; you will just need to self-certify that your income has been either directly or indirectly impacted by COVID-19.

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How will the non-payment be recorded with credit reference agencies?

The unpaid interest from your payment holiday will still be recovered later, but individual credit ratings will not be affected. However, it’s important to know that credit files aren’t the only source of information which lenders can use to assess creditworthiness.

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I've applied for a payment holiday but my Direct Debit has been taken, what do I need to do?

If you've had confirmation from us that your payment holiday has been approved, the quickest way to get a refund is to ask your current account provider to reject or recall the direct debit request.

If you've yet to receive confirmation from us that your payment holiday has been approved please do not arrange to reject or recall the payment until your payment holiday request has been processed and we have provided formal approval.

If your Mortgage Payment Holiday request has been approved and a direct debit payment has been taken for May, your mortgage payment holiday will start in June.

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Where can I find the latest medical information about coronavirus?

You can find the latest advice from the NHS here and advice from the World Health Organisation (WHO) here.

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I’m worried about being able to pay for my home insurance due to COVID-19, what can I do?

We are here to help so if you are worried about being able to pay for your Home Insurance due to COVID-19, please get in contact as soon as you can. You can email RSA at priority.mailbox@uk.rsagroup.com or call them on 0330 102 2829. RSA will get back to you as soon as possible to discuss the options available to you. Rest assured all conversations are confidential.

If you are unable to do this yourself or would prefer that they discuss your policy with a family member or friend, they need your permission to do this. Please let them know if this is the case.

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How can we get in touch?

As the situation is changing very quickly, please check the website in the first instance for the latest updates and if you need to get in touch for urgent support and you’re in arrears, please call 0800 952 0615.

As we are experiencing a larger than normal volume of calls, we ask that you only contact us if your next payment is due within 7 days and you are unable to make it, please allow those who need emergency help to receive it.

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