Payment Holiday Information


Introduction

We understand that it is unsettling times for many of our customers and as your mortgage servicer, we are working hard to support customers who are experiencing issues with their finances as a result of Coronavirus. To support, we can offer a payment holiday of up to three months without the need to fully assess your circumstances.

What is a Payment Holiday?

A payment holiday is a break from paying your mortgage. You can ask to take a break of up to 3 months if you have been impacted by Coronavirus.


It won’t affect your credit file, so there’s one less thing to worry about.


How does this impact my monthly payments?

If you take a mortgage payment holiday, you won’t make mortgage payments for up to 3 months. During this period, interest will continue to be charged and the total amount of interest you pay over the term of the mortgage will increase.


At the end of your payment holiday, we will recalculate your monthly payments over the remaining term of your mortgage taking this increase into account.


This will ensure for repayment mortgages, the interest that has not been paid is spread over the remaining term of your mortgage, resulting in a new monthly payment to repay the balance in full by the end of the term.


For interest only mortgages, the payments will be recalculated based on the new balance, but you will need to put in place alternative arrangements to ensure that your increased mortgage balance is repaid in full by the end of the term.


There are other ways to repay the missed payments. For example, we can arrange for you to pay this over a shorter period of time. You can contact us at the end of the Payment Holiday to discuss the options available to you.


If your mortgage term has expired your payment will remain static after your payment holiday completes interest will continue to accrue on the outstanding balance of the mortgage.


Representative Example

Current outstanding mortgage balance

£100,000

Interest rate

2.75%

Term remaining

20 years (repayment mortgage)

Current monthly payment

£542

New monthly payment after payment holiday

£551

Monthly increase

£9

Total amount to repay without repayment holiday

£130,120

Total amount to repay with three month repayment holiday

£130,571

 

If your account is in arrears

If your account is in arrears, you can still apply for a payment holiday. Your arrears balance will remain static during this period. We will continue to report your arrears balance to the Credit Reference Agencies and, if in place, that you have an arrangement to pay. Once your payment holiday has completed, we will contact you to discuss your account and set up a new arrangement based upon your circumstances.


Interest only mortgage accounts

Once we send you confirmation of your new monthly payments and how a payment holiday has impacted your mortgage account you will need to review your original repayment vehicle or put plans in place to ensure that you can repay the full balance of the mortgage by the end of the term.  You may want to seek independent advice. Please see our useful links which details some organisation you can access this HERE.


Term Expired Loans
In the event that your mortgage term has expired, a payment holiday can still be considered.  After a payment holiday is completed, we will contact you to establish your plans in relation to repaying the mortgage.


Buy-To-Let (BTL) Customers

A Payment holiday is available to Buy-to-Let landlords whose tenants have lost income because of the impact of Coronavirus. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.


Lenders Insurance Policy (LIO)

If you are charged a Lenders’ Insurance fee as part of your mortgage payment, this continues to be charged to your account on a monthly basis during the payment holiday, but you will not incur any interest on these sums during this time.  If you would like to make payments towards this, please contact us to discuss options available to you.


Is a Payment Holiday the right option for me?

If you can afford to continue making your monthly payment, please continue to do so. If your circumstances change, you can apply for a payment holiday at a later date.

There are alternative options available and payment holidays aren’t always the most suitable solution for everyone.  We can also offer more tailored support according to your individual situation if you wish to undertake a full assessment of your circumstances.

You can seek independent advice from agencies, see link above to ensure this is the best option for you.

 

How do I apply for a Payment Holiday?

If you wish to apply for a payment holiday, click here to download a Payment Holiday FormComplete and return this to us by:


Email   Post 

Address:   This e-mail address is being protected from spambots. You need JavaScript enabled to view it


Please ensure you put in the subject line your:

 
· Mortgage Account Number
· Surname
· Title – Payment Holiday Request
This will allow us to identify and manage
your request more efficiently.

  Send to 
 
  Payment Holiday Request

  Engage Credit

  Harman House

  1 George Street

  Uxbridge

  UB8 1QQ











 

Please note in relation to emails:

E-mail transmissions cannot be guaranteed to be secure, complete or error-free. Pepper (UK) Limited, trading as Engage Credit, does not accept any liability in the event that e-mail transmissions are intercepted, corrupted, lost, destroyed, arrive late or contain incomplete information or viruses.  Anyone who communicates with Pepper (UK) Limited, trading as Engage Credit by e-mail is taken to understand and accept the above risks.


For details of how we process your personal information, please refer to our Privacy Notice which can be accessed HERE.

 

What happens next?

Once we have received your payment holiday request either by post or email, you will receive an email to acknowledge receipt.  We will send you a confirmation letter within 7-10 days once we have set up your payment holiday or we will telephone you to discuss your request.

 

Please do not cancel your Direct Debit as we will amend this when we set up the payment holiday and your Direct Debit with automatically adjust to collect the higher amount once your payment holiday has expired. If you pay by another method, you will need to amend your payment.

 

Please be aware that we are busier than usual and it can take between 7 - 10 days for your payment holiday to take effect. If your next payment is due within the next 10 days your payment holiday may not take effect until the subsequent payment, we will send confirmation in writing.