What is a personal loan payment holiday?

If you think you'll struggle to make your monthly loan payments because of coronavirus, we can help by offering our members a reduction in monthly loan payments.

Under a loan payment holiday, we will allow you to reduce your monthly payments to £1 per month, for 3 months. It won’t affect your credit rating, so there’s one less thing to worry about.

Who can apply for a personal loan payment holiday?

You can apply for a personal loan payment holiday 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.

Is a personal loan payment holiday the right option for me?

It’s important to remember that a personal loan payment holiday is a temporary reduction in your loan payments, to help you through these uncertain times.

There are a few things to consider before applying for a personal loan payment holiday, to make sure it’s right for your situation:


  • We’ll continue to charge interest on your loan at your normal rate during the payment holiday.
  • At the end of your payment holiday, we will extend your loan term by 3 months and your payments will be recalculated. You may see a small increase in your monthly payments.
  • Currently, we can only offer 3-month payment holidays. The most appropriate time for you to take out a payment holiday will depend on your individual circumstances.

Taking a payment holiday means that it will take you longer to repay your balance, so you will pay more overall for your borrowing.

Please think carefully before requesting a payment holiday. Only ask for one if you need financial help for a short period and right away.

What impact will a personal loan payment holiday have on my future repayments?

As interest will continue to be charged to your account during your payment holiday, the overall amount you will need to pay back will increase. This additional interest will be split across your remaining repayments, causing them to increase.

The following examples demonstrate how taking a payment holiday might increase monthly repayments.


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:


  • The examples above 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.

What happens after I apply?

Where we can, we’ll start your payment holiday from your next payment. However, if your next payment is due in the next 7 working days, your payment holiday may start the following month.

We'll aim to get back to you and confirm within 5-7 working days from when you submit your payment holiday application. But, due to high volumes of applications right now, it might take slightly longer. Please bear with us.

Before you apply

Please note: submitting one form will cover both loan holders if you have a joint loan. Make sure you both wish to apply for a payment holiday before doing so.

If you have 2 loans with us, you’ll need to submit a new form for each one.

Please don’t cancel your Direct Debit. We need this to stay set up so that we can take your £1 monthly payment. Without making this £1 monthly payment, you risk falling into arrears.

Please bear with us and avoid calling in to check on progress, or re-requesting your payment holiday. Rest assured we have your application and you’ll hear from us soon.

Coronavirus (COVID-19) help and support

We’re here to help if you have any worries regarding coronavirus whether it’s money, managing your accounts, getting to branch or fraud.

Apply for a personal loan payment holiday