Coronavirus FAQ
While your health and welfare are top priorities, Coronavirus is affecting lots of people’s income and employment, as well as the ability to manage their money
Our focus is on helping our customers, the wider community and our people through the Coronavirus outbreak and beyond. While your health and welfare are top priorities, Coronavirus is affecting lots of people’s income and employment, as well as the ability to manage their money so we've pulled together some useful information.
What can I do?
Request a mortgage repayment holiday
The Chancellor announced on 17th March that mortgage lenders have agreed to provide a three-month payment holiday to affected customers who get in touch. This means that if you can’t pay your mortgage as a result of Coronavirus, you can speak to your lender about taking a temporary break in your mortgage payments.
If you decide to take a payment holiday, after three months, your lender will review your circumstances and agree with you how to make up the deferred payments. Interest will still be charged for the duration of your payment holiday so this could mean an increase in your future monthly mortgage payments or an extension to your mortgage term.
On 9th April, the Financial Conduct Authority (FCA) confirmed that they are expecting banks and lenders to offer even more financial assistance to customers at this time. This includes a temporary payment holiday for loans and credit cards (as well as mortgages) for up to three months.
The Government and the financial services industry have agreed that any borrower taking advantage of a payment holiday should not result in missed payments building up on your credit report - which should generally mean your credit score won’t be damaged.
Remember, your credit score is made up of many factors, including your total level of unsecured debt and how heavily you’re using your credit cards.
Mortgage lender
Lender | Waiving missed payments fees | Mortgage holidays | Mortgage holiday impact | How | Contact |
Accord Mortgages | Contact provider | Yes | Contact provider | Apply online | 0345 1200 872 |
Aldermore | No | Yes | Make up payments later in term. | Apply online | |
Atom | No | Yes | Contact Provider | Contact Provider | |
Bank of Scotland | No | Yes | Payments will be recalculated later in term | Apply online | |
Barclays | No | Yes | Payments will be recalculated at end of holiday | Apply online | |
Bank of Ireland | No | Yes | Repayments adjusted so that it will be repaid within the original term | Apply online | |
Birmingham Midshires | No | Yes | Payments recalculated at end of holiday | Apply Online response within 3-5 days | |
Bluestone Mortgages | Contact Provider | Contact Provider | Contact Provider | ||
Buckinghamshire Building Society | No | Yes | Contact Provider | Contact Provider | |
Castle Trust | Contact Provider | Contact Provider | Contact Provider | Contact Provider | |
Cambridge Building Society | Contact Provider | Contact Provider | Contact Provider | Contact Provider | |
Central Trust | Contact Provider | Contact Provider | Contact Provider | Contact Provider | |
Chelsea Building Society | No | Yes | Interest will be applied at the end of the holiday | Apply online | |
Clydesdale Bank | No | Yes | Contact provider | Apply online | |
Co-op | Yes | Yes | Customer will pay more interest overall. | Contact provider | |
Coventry Building Society | No | Yes | Added to term | Apply online | |
Danske Bank | No | Yes | Payments adjusted at end of holiday | Apply online | |
First Direct | No | Yes | Payments adjusted at end of payment holiday | Apply online | |
Foundation Home Loans | Contact provider | Contact provider | Contact provider | Contact provider | |
Furness | No | Yes | Contact Provider | Contact Provider | |
Glasgow Credit | Contact Provider | Contact Provider | Contact Provider | Contact Provider | |
Halifax | No | Yes | Payments will be recalculated later in term | Apply online | |
Hinckley and Rugby Building Society | No | Yes | Interest added to the term | Apply online | |
HSBC | No | Yes | Payments added to term. | Apply online | |
Kensington | No | Yes | Contact provider | Contact Provider 5 days before next payment is due | |
Landmark | No | Yes | Contact provider | Contact provider | |
Leeds Building Society | Yes | Yes | Payments recalculated at end of holiday | Apply online | |
Lloyds | No | Yes | Payments recalculated at end of payment holiday | Apply online decision in 2-3 days | |
M&S Mortgages | Contact provider | Yes | Contact provider | Contact Provider | |
Melton Mowbray Building Society | Contact provider | Yes | Contact provider | By phone: 01664 414141 | |
Metro Bank | No | Yes | Payments to be repaid, will depend on your individual situation | By email or request call back | mortgageservicing@metrobank.plc.uk |
Nationwide | No | Yes | Increased monthly payments at end of mortgage holiday. | Apply online | |
NatWest | No | Yes | Increased monthly payments at end of mortgage holiday. | Apply online | |
Newcastle Building Society | Contact provider | Contact provider | Contact provider | Contact Provider | |
Norton Home Loans | Contact provider | Contact provider | Contact provider | Contact provider | |
Nottingham Building Society | No | Yes | Increased term | Apply online | |
NRAM | Contact provider | Contact provider | Contact provider | Contact provider | |
Optimum Credit | Contact provider | Contact provider | Contact provider | Contact provider | |
Principality | No | Yes | Contact provider | Apply online | |
RBS | No | Yes | Make up payments within the term | Apply online | |
Saffron Building Society | Contact provider | Contact provider | Contact provider | Contact provider | |
Sainsbury’s | Contact provider | Contact provider | Contact provider | Contact provider | |
Santander | Contact provider | Yes | Flexible | Apply online | |
Scotwest | Contact provider | Contact provider | Contact provider | Contact provider | |
Scottish Widow | Yes | Yes | Increased payments | Apply online | |
Skipton BS | No | Yes | Contact provider | Apply by email | Payment holiday request |
Teachers Building Society | Contact provider | Contact provider | Contact provider | Contact provider | |
Tesco | Contact provider | Contact provider | Contact provider | Contact provider | |
The Progressive | Contact provider | Contact provider | Contact provider | Contact provider | |
The Scottish Building Society | No | Yes | Contact provider | By email | |
The West Brom | No | Yes | Increased payments or term | Apply online | |
TSB | No | Yes | Customer will pay more interest overall. | Apply online | |
Ulster Bank | No | Yes | Added to term | Apply online | |
Virgin Money | No | Yes | Increased monthly payments at end of mortgage holiday. | Apply online | |
Yorkshire Bank | No | Yes | Payments to be repaid, will depend on your individual situation | Apply online | |
Yorkshire Building Society | No | Yes | Contact provider | Apply online |
Remortgage
The Bank of England base rate was cut to 0.1% on 19 March. This means that if you’re on a variable or tracker mortgage, you could see your repayment rates fall.
If you have a fixed-rate mortgage, this cut will not affect your monthly payments. However, if you’re coming to the end of your existing fixed-rate agreement, this could be a good time to search for a new offer, as mortgage rates remain at historical lows.
Stay on top of your existing credit commitments
We know that this is a very difficult time and that many people have been severely affected by the financial impact of Coronavirus, but if you’re able to, it’s really important to pay all of your bills on time so you don’t damage your chances of getting credit in the future. If you can’t do this, try to pay at least the minimum amount due on your credit commitments.
If you think you’re going to struggle to make payments, due to the knock-on effects of the outbreak, please speak to your lender as soon as you can. You can find more details about the help that lenders are offering in our guide here.
The Money Advice Service offers free and impartial support. They have a dedicated page on coronavirus and your money that might help you assess your financial situation. Other such advice and support is available from StepChange, National Debtline, PayPlan or Citizens Advice.
Other useful information
Home Repossessions
From 27 March, all ongoing possession proceedings are suspended for 90 days with an option to extend the suspension further. That means banks and building societies have been forbidden from repossessing people’s homes, and cannot charge fees for payment holidays agreed in the wake of the outbreak.
If you Rent, and are struggling to pay due to the outbreak, you should also contact to your landlord as soon as possible to let them know your situation and try to work out a repayment plan.
You should know that all landlords in England and Wales must give three months’ notice before starting eviction proceedings according to emergency legislation that was passed on 25 March.
You could also be entitled to financial help with your rent. You can check the assistance being offered by the government for renters during the outbreak here.
Government assistance for the self-employed unable to work due to the outbreak
It was announced on 27 March that self-employed workers will be able to apply for a grant worth 80% of your average monthly profits (based on your tax returns over the past three years) to help you cope with the financial impact of coronavirus.
You can read more on government assistance here.
Updated guidance on being furloughed
The Coronavirus Job Retention Scheme allows firms to temporarily freeze employment for those who can’t work due to the outbreak. For the duration of the employment freeze, the government will pay 80% of the furloughed staff’s salary - up to £2,500 per month.
The previous guidance has now been updated to say that firms can now rehire and furlough staff who left their employment after the 28th February 2020. This is true of those who lost their jobs as a result of the outbreak and those who left voluntarily.
Tax relief working from home
If your employer requires you to work from home during the outbreak, and that means you've had increased household bills (eg energy), you're entitled to claim something back.
You can claim tax relief on £6 of income, which for basic 20% taxpayers is £1.20 a week (about £60 per year), and £2.40 per week for 40% taxpayers (about £120 per year).
Free school meals
If your children qualify for free school meals, you should be entitled to support that ensures you receive food while your child's at home. This means you're due a food parcel or £15 per week of supermarket vouchers.
The school should be arranging this but it may be worthwhile to check with them or your local authority. You can find more information here.