Loan COVID-19 payment breaks

Here's everything you need to know about delaying your loan payments

Applications for COVID-19 payment breaks are open until 31 March 2021.

    What is a payment break?

    A payment break delays your payments for up to 6 months. After an initial 3 month payment break, you can apply for an extension if you need it. Just so you know, we can only offer payment breaks lasting until 31 July 2021 - so your extension may be for less than 3 months.

    Though they don't affect your credit file, bear in mind that lenders may look at other information - such as bank statements - when assessing credit applications.

    You can choose to make up your delayed payments within your original loan term - if you do this no additional interest will be charged. Alternatively, we'll automatically extend your loan to cover your delayed payments and the additional interest charged for extending your term.

    Want to find out more?

      Apply for a Loan payment break

      If you haven't had one before, you can apply for a COVID-19 payment break.

      • Payment breaks allow you to delay your payments for up to 6 months.
      • If you've already missed more than one monthly payment you can't request a payment break online. Please get in touch now on 0345 300 4547 so we can discuss your options.
      • If you don't think a payment break is right for you, we have other support options available. Just go to our financial difficulty page to find out more.

      If you've already had one 3 month COVID-19 payment break, you can apply for a payment break extension. Just so you know, we can only offer payment breaks lasting until 31 July 2021 - so your extension may be for less than 3 months.

      • Payment breaks allow you to delay your payments for up to 6 months.
      • If you've missed more than one monthly payment since your first payment break you can't request a payment break extension online. Please get in touch now on 0345 300 4547 so we can discuss your options.
      • If you think you’ll need further support with your payments, there are other ways we can help – find out more at our financial difficulty page.

      Payment breaks allow you to delay your payments for a maximum of 6 months. So if you've already had a payment break and a payment break extension, we can't give you another.

      Just go to our financial difficulty page to see the support we can offer.

      Things you may need to know before, during, or after your payment break:

      Can I choose the length of my break?

      No, we only offer COVID-19 payment breaks for up to 6 months. After an initial 3 month payment break, you can apply for an extension if you need it. Just so you know, you'll need to make two different applications - one for a payment break, and one for an extension.

      If you don't think a payment break is right for you, we have other support options available. Just go to our financial difficulty page to find out more.

        When will my payment break start?

        Once you submit a request we’ll take care of everything, including pausing your Direct Debit, so there’s no need to cancel it.

        Where we can, we'll start your payment break from when your next payment is due. If your payment is due within the next 7 days, this payment will be taken and your break will start in the next month. If you're unable to make your latest payment, it may be too late to stop your Direct Debit - so please call us now on 0345 300 4547.

        If you’ve already missed more than one monthly payment, please get in touch now on 0345 300 4547 so we can discuss how best to support you.

          Will a payment break affect my credit file?

          COVID-19 payment breaks won’t be reported as a missed payment to credit reference agencies. But bear in mind, lenders may look at other information – such as bank statements – when assessing credit applications.

          You may receive letters from us notifying you of outstanding payments, for legal reasons we’re unable to stop these. Rest assured there is nothing you need to do about any ‘missed payments’ related specifically to your COVID-19 payment break.

            Can I still make payments during a payment break?

            If you’d like to make payments towards your loan during your payment break, you still can - it could help you pay your loan off quicker.

            Here are the various ways you can make additional payments to your loan.

              Will I be charged interest?

              This depends on how you choose to make up your delayed payments:

              • If you make up your delayed payments within your original loan term, no additional interest will be charged.
              • If you don’t make up your delayed payments within your original loan term, we’ll automatically extend your term and additional interest will be charged.
                Your term will be extended by the number of months needed to cover your delayed payments and the interest charged. You can find out more about how and when these payments will be taken.

              Here are some examples of how a payment break might look for a loan over 5 years:

                Loan Payment Break

                Example 1: £5,000 loan over 5 years

                Example 2: £10,000 loan over 5 years

                Example 3: £10,000 loan over 5 years

                Example 4: £10,000 loan over 5 years

                Loan balance at the start of COVID-19 payment break

                  £2,154

                    £6,462

                      £8,616

                        £9,647

                          Loan balance excluding interest (the capital amount)

                            £2,089

                              £6,176

                                £8,116

                                  £8,292

                                    Annual interest rate

                                      3.00%

                                        3.00%

                                          3.00%

                                            7.90%

                                              Effective monthly interest rate

                                                0.25%

                                                  0.25%

                                                    0.25%

                                                      0.66%

                                                        Additional interest from COVID-19 payment break

                                                          £16 (£2,089 x 0.25% x 3)

                                                            £46 (£6,176 x 0.25% x 3)

                                                              £61 (£8,116 x 0.25% x 3)

                                                                £164 (£8,292 x 0.66% x 3)

                                                                  Additional interest from Payment Break Extension

                                                                    £16 (£2,089 x 0.25% x 3)

                                                                      £46 (£6,176 x 0.25% x 3)

                                                                        £61 (£8,116 x 0.25% x 3)

                                                                          £164 (£8,292 x 0.66% x 3)

                                                                            For illustrative purposes only. These examples assume there has been no payments made since the start of the payment break.

                                                                            The additional interest is calculated using the loan balance excluding interest at the start of the payment break or payment break extension. We multiply this amount by the effective monthly interest rate. This is then multiplied by 3 - the number of months in a payment break.

                                                                            Once your COVID-19 payment break is in place we’ll send you an estimated cost of interest. And when it ends, we’ll send you a personalised breakdown of the interest and new repayments due.

                                                                              What happens when my payment break ends?

                                                                              You don't need to do anything. We'll contact you towards the end of your payment break to let you know when your next payment is due. Then we'll restart your Direct Debit and take the same monthly payment as before.

                                                                              If you cancelled your Direct Debit, we’ll reinstate this so it resumes as normal.

                                                                              Remember you’ll still need to make your delayed payments, either by paying them off within your original term, or alternatively we’ll extend your loan term automatically to cover the delayed payment and the interest charged.

                                                                              If when your payment break comes to an end you still can’t make your payments, we can still help. Just go to our page on financial difficulty to find out how.

                                                                                When and how do I make up my delayed payments

                                                                                You can choose how to make up your delayed payments, either:

                                                                                • Pay the sum of your delayed payments by making additional payments during your original loan term - here are your ways to pay.
                                                                                • If you don’t make up your delayed payments within your original loan term we'll automatically extend your loan term by the number of months needed to cover your delayed payments and the additional interest charged

                                                                                  This means, per payment break, it could take you an additional 4 to 6 months to pay back your loan - 3 months to cover the payment break, plus an additional 1 to 3 months to cover the interest charged from extending your term. The interest charged will be dependent on your loan term and APR.

                                                                                  Please note, the additional payments required to cover the interest will never exceed your normal monthly payment amount. If the interest due is more than the normal monthly payment, this will be split across a number of payments until the balance is repaid.

                                                                                  Once your COVID-19 payment break has ended, we’ll send you a personalised breakdown of the interest and new repayments due.

                                                                                  Why am I receiving letters?

                                                                                  You may receive letters from us notifying you of outstanding payments, for legal reasons we’re unable to stop these.

                                                                                  Rest assured there’s nothing you need to do about any ‘missed payments’ related specifically to your COVID-19 payment break.

                                                                                    Apply for a Loan COVID-19 payment break

                                                                                    Apply for an extension to my Loan COVID-19 payment break

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