Payment Holidays

Billboard

During this time of uncertainty, we remain committed to supporting you and your clients so we would like to update you on mortgage payment holidays.

As we continue to work in line with the government announcements, existing customers can request a payment holiday at any time until the 31st October 2020 via our website here.

Please read below for details on what information we would require for new or additional lending for clients that have taken mortgage payment holidays.

 

£ for £ Product Switches

Where a Fixed Rate or the term itself is expiring, £ for £ product switches will be permissible for customers who are currently on, have applied for or have recently completed a Payment Holiday – the application can be underwritten during the payment holiday but the customer must have exited the holiday payment period before the switch can be completed.

 

New Lending & Product Switches

  • Where a customer requests any additional lending or a fundamental change to product, this will not be considered until they have completed their payment holiday and made three subsequent payments in full after the holiday expired
  • If a customer does not wish to wait until the end of the agreed payment holiday and are only part way through, they will need to cancel the payment holiday and make up any payments that have been deferred before we can consider additional lending
  • They must also evidence sustainability of income during the holiday period via bank statements/up to date proof of income. Until this is provided, we cannot proceed or consider an application
  • Where a customer is requesting both additional lending and a payment holiday, they will need to select one of these options only – not both

Please confirm if the client has requested a payment holiday from another lender. We can still consider lending to them if we are satisfied with their reasons for needing the payment holiday and the below requirements are met:-

  • Clear CAIS/Insight data confirming no late payments and the accounts have been performing as agreed with the current lender
  • If a payment holiday with another lender(s) is in place, or has been previously, we will not require them to make up payments to other lender
  • If there was any receipt of rentals during the payment holiday, confirming minimal voids we would require bank statements to support the build-up of cash reserves if applicable. We understand that clients entered into payment holidays for various reasons to support their property portfolio
  • Standard portfolio assessment / stressing via eTech and due diligence needs to meet our standard criteria
  • Where other lenders are incorrectly reporting arrears on genuine holiday payments, we will need evidence of the error and that the customer is in an agreed payment holiday. The evidence must be supplied from the lender to confirm this.