About changes to payment holidays

As of 1 April 2021, we are no longer accepting new applications for personal loan payment holidays.

However, if you’re already on a payment holiday and you need more support, you can apply for an extension.

As long as you are currently on a payment holiday, you’ll be able to extend it up until 31 July 2021.

This is as long as:

  • it doesn’t go over the 6-month payment holiday limit, and
  • there are no gaps between the payment holidays.

If you’ve already had 6 months of support, you can’t apply for a payment holiday extension.

If you still need help, find out what you can do after your payment holiday ends.

All payment holidays must end by 31 July 2021.


Who can apply?

You can apply for a personal loan payment holiday extension if:

  • Your finances have been affected by coronavirus – for example, you can’t work due to self-isolation, or new childcare responsibilities.
  • You’re up-to-date with your monthly loan payments. If you’re already behind on your personal loan payments, our money worries page can help.
  • Both loan holders agree to doing so, if this is a joint loan.
  • The support doesn’t go over the 6-month payment holiday limit, and
  • There are no gaps between the payment holidays.

Get support with a payment holiday extension

If you want to benefit from the full 3 months of available support, you should apply 7 working days before your May 2021 payment is due.

If you haven't taken a payment holiday or are not eligible to apply and need help with your personal loan payments, visit our If you need support with your loan payments section.


The impact of extending a personal loan payment holiday

Your credit rating

Although a payment holiday extension won’t affect your credit rating, lenders may look at other information (for example, information provided by you, or bank account information) when they decide whether to lend to you in the future.

Future payments

It’s important to understand that interest will continue to build at your usual rate during the holiday.

This means that the total amount of interest you’ll pay back will increase.

Examples of payment increases

To give you an idea of how your payments may rise after taking 3 months off.


Examples of the impact on payments and interest of taking a payment holiday on a £10,000 loan.
Personal loan examples £10K loan over 5 years at 10.9% per annum and payment holiday taken at 31 months £10k loan over 5 years at 2.9% per annum and payment holiday taken at 31 months
Current monthly payment £214.40 £179.07
New monthly payment when payment holiday ends £219.90 £180.26
Increase in monthly payment when payment holiday ends +£5.50 +£1.19
Total additional interest over remaining term £168.00 £38.70

Please note:


  • These examples assume that the original loan is refinanced at the same interest rate, that the remaining term is extended by 3 months, and that these are the payments under the new loan.
  • Examples are illustrative only and may depend on when your payment holiday starts.
  • Actual costs will depend on your individual circumstances.

Before you apply

Things to consider before applying, to make sure a personal loan payment holiday extension is right for you:

  • We’ll continue to charge interest on your loan at your normal rate during the payment holiday extension.
  • At the end of your payment holiday extension, we will write to you about how to start repaying your loan again. You will have the option to amend your loan term and your payments will be recalculated. You may see an increase in your monthly payments due to the interest added during your payment extension.

Applying to extend a personal loan payment holiday

Online

The first step is to provide us with more detail about your financial situation.

The quickest way to do this is by filling out our form online. To help you complete the application, please have information about your income and outgoings to hand.

Once we’ve received your form, we’ll review it and get in touch by phone within 7 days.

Complete our income and expenditure form

Important:

You only need to complete the income and expenditure form once. If you've had more than one payment holiday with us - for example, a mortgage or credit card payment holiday - and you've already completed the form, you don't need to do it again.

Over the phone

If you need to speak to someone urgently, you can call us.

Monday to Friday, 9am to 5pm.
Closed weekends and bank holidays.

0800 464 30 40


If you still need help with your loan payments

Help is still available if you aren’t able to make your payments. The first step is to provide us with more detail about your financial situation.

Online

The quickest way to do this is by filling out our form online. To help you complete the application, please have information about your income and outgoings to hand.

Once we’ve received your form, we’ll review it and get in touch by phone within 7 days.

Complete our income and expenditure form

Important:

You only need to complete the income and expenditure form once. If you've had more than one payment holiday with us - for example, a mortgage or credit card payment holiday - and you've already completed the form, you don't need to do it again.

Over the phone

If you need to speak to someone urgently, you can call us.

Monday to Friday, 9am to 5pm.
Closed weekends and bank holidays.

0800 464 30 40