What is a loan payment break?
A payment break allows you to stop paying your loan for the agreed period of time.
At the end of your payment break, if full payments do not restart on your loan, there may be circumstances in which we have to inform Credit Reference Agencies and this may impact your credit rating/score. The extent of the impact to your credit rating/score will depend on your overall financial profile. If this is the case, we will inform you during your application.
For further information on the impact you should speak with an independent debt advice agency who can give you support and advice.
What happens to my payments, how will that impact my loan going forward?
A loan payment break will give you a break of up to 3 months from your loan payments. You will need to make up these missed payments at the end of your loan term.
At the end of your payment break, your monthly payments will be re-calculated and will increase to cover interest that has built up during the payment break period. Your loan term will be extended by the same period as your break to allow you to repay the missed capital payments.
For example, if your loan was due to be repaid in April 2022 and you took an initial payment break of 3 months, your loan would have been repaid in July 2022.
Here are some things to consider before applying for a loan payment break:
- When your monthly payments restart, your usual direct debit will recommence and increase to cover the interest from your payment break.
- The payment(s) that you have missed will be covered by the extension of your loan term which will be the same duration as your loan payment break.
- The total amount of interest you pay over the term of the loan will increase.
Eligibility criteria and conditions apply.
To apply for a Loan Payment Break, you can use the form on this page or contact us on +44 (0)1624 646 500*.
*Lines are open Monday to Friday 9am - 5pm GMT (except bank holidays). Calls may be recorded.