Mortgage payment difficulties due to Coronavirus
What is a Mortgage Payment Deferral?
With a payment deferral you'll make reduced or no monthly mortgage payments for a set amount of time, in this case up to three months initially.
However, it’s important to remember that you still owe that money and the interest on your mortgage still accrues during a payment deferral.
At the end of the payment deferral we'll recalculate your monthly payments over the remaining term of your mortgage. We'll write to you to let you know your new monthly payments and to outline the other options available to you to repay the interest charges incurred and make up the deferred payments. We'll have a range of options available to help you to do this.
I’ve already restarted my mortgage payments, but have found myself in further difficulty. What should I do?
You can no longer take a further Mortgage Payment Deferral, but our team of experts are on hand to assess your individual needs and circumstances and discuss the different options we have to support you.
Speak with the team on 0345 601 3344 to arrange an appointment with one of our experts.
How do ‘payment deferrals’ work?
The mortgage repayment, or part of it, is deferred for a period. The monthly payment changes to zero or the reduced amount, and interest accrues for the period. This may be particularly appropriate where there is a temporary shortfall of income.
However, this is not a solution where, because of a permanent reduction in income, a borrower is unable to afford anywhere near the full mortgage repayments and there is little prospect of an improvement in the situation in the foreseeable future.
Where repayments are deferred for a time, the borrower will need to make up these repayments in the future, which could be over the remaining term.
How will my credit file be impacted?
Any payment deferral that you’ve had under the temporary government guidelines will not be reported on your credit file if you were up to date with your payments when you took it out. This covers both the initial payment deferral of up to three months, and any extensions granted for up to a further three months. However, lenders may use information obtained from other sources, such as bank account information or information provided by you as part of the application process, in their lending decisions.
If you've reached the end of your maximum six months’ Mortgage Payment Deferral and you need support for longer, or you need support now that the deadline for applying for a mortgage payment deferral has passed, we’ll work with you to come to an arrangement to get you back on track, but any missed payments will report on your credit file.
Am I eligible for a payment deferral?
To be eligible for a payment deferral you'll need to self-certify that your income has been impacted by Coronavirus.
If you're a Buy-to-Let landlord, it'll be available if your tenants have lost income because of the impact of Coronavirus in order for you to pass this relief onto them.
There are a number of options available and payment deferrals aren’t always the most suitable solution for everyone. By speaking to us, we can tailor the best option for you.
Will all customers receive an automatic three-month payment deferral?
A flexible approach will enable all types of lenders to offer the right support for customers. We'll want to speak to you to find out how we can tailor the best option for you.
We'll help customers the best way for the individual, but an automatic payment deferral may not always be the most suitable approach and may not be required by all customers.
What affect will my mortgage payment deferral have on my mortgage payments?
If you’d like an approximate indication of the impact your current mortgage payment deferral will have on your monthly payments, or if you’re considering extending your payment deferral, you may find the MoneySuperMarket 'Taking a Mortgage Payment Holiday' Calculator useful.
You’ll need to know your current mortgage payment, outstanding mortgage balance, repayment type and (for repayment mortgages) your remaining term.
If you have access to your accounts online or via The Cambridge Money App, you’ll be able to find your latest mortgage payment and outstanding balance there.
If you have your 2020 mortgage statement you’ll be able to see the repayment type and term that was remaining on your mortgage as at 31st December 2020. If you’ve made no changes to your term since then, you can use this to work out what your remaining term will be now.
If you don’t have access to any of this information, or if you have multiple parts to your mortgage, call the team on 0345 601 3344 and they’ll be able to help.
Can anyone apply for a Coronavirus mortgage payment deferral?
If you're in financial difficulty as a result of Coronavirus and are concerned about making your mortgage payments during this time you should contact us as soon as possible. You don’t need to provide any documentation; however you will need to self-certify that your income has been either directly or indirectly impacted by Coronavirus.
If you’re unsure whether a mortgage payment deferral is right for you, you may find it useful to read the Money Advice Service’s A guide to Coronavirus mortgage payment holidays.
How do I apply for a mortgage payment deferral?
If you're concerned about making your mortgage payments during this time you should contact us as soon as possible. You don’t need to provide any documentation; you'll just need to self-certify that your income has been either directly or indirectly impacted by Coronavirus.
You can apply for an initial payment deferral up until 31st March 2021, but if you want to benefit from the maximum permitted six months’ payment deferral you’ll need to apply in good time before your February 2021 payment as deferrals can only cover payments up to and including July 2021.
If you’ve already had a payment deferral of less than six months you can apply for an additional payment deferral up until 31st March 2021 (subject to the maximum overall six months). If your initial three month payment deferral expires after 31st March 2021 you’ll have the option to extend it up to and including July 2021 payment (again subject to the maximum overall six months) as long as the initial payment deferral and the extension run consecutively.
If you're a Buy-to-Let landlord, you'll need to self-certify that your tenant’s income has been impacted by Coronavirus. Landlords are expected to pass on this relief to their tenants to ensure that they're supported during this time.
You can submit a request for one of our experts to call you back regarding a mortgage payment deferral using the 'Need Help?' section below.
What happens at the end of my mortgage payment deferral?
At the end of the payment deferral we’ll recalculate your monthly payments over the remaining term of your mortgage. We’ll write to you to let you know your new monthly payments and to outline the other options available for you to repay the interest charges incurred and make up the deferred payments. We’ll have a range of options available to help you to do this:
- Make a one off payment penalty free, to represent the shortfall amount. This will immediately lower the balance outstanding and the amount of interest charged. Your payments will then be recalculated on the reduced balance
- Make an arrangement to repay the shortfall amount over a shorter period of time
- Extend the mortgage term by the duration of the payment deferral agreement period. This option will increase the amount you pay back over the lifetime of your mortgage
If you’d like to opt for one of these alternative options you can complete and return the form that will be enclosed when we write to you at the end of your payment agreement. If you need to discuss these options in more detail, the letter will also tell you how you can book a telephone appointment with one of our experts.
How long will it take for you to process my payment deferral?
We're doing our best to support our customers during these unprecedented times. However, the impact of Coronavirus is also having an effect on our own teams and applications will be dealt with as quickly as possible.
What happens if I'm already in arrears, and I need a mortgage payment deferral?
If you're concerned about the impact Coronavirus will have on your income, then you should contact us as soon as possible. We'll review any changes to your circumstances to ensure that your payments remain sustainable. We'll make every effort to support people already in financial difficulty, while ensuring a mortgage remains sustainable.
Mortgage providers have agreed to a moratorium (from 19th March 2020 to the 31st January 2021) on residential and buy-to-let possession action, meaning that no homes will be repossessed at this difficult time.
What if I need support longer term or help to recover to my previous position after the payment deferral expires?
When we write to you at the end of your payment deferral agreement we’ll invite you to book an appointment with one of our experts if you’re still experiencing financial difficulty.
If you were already in arrears, or indicated to us at the time that you took your payment deferral agreement that you may need longer term support, we'll get in touch with you to assess your circumstances before the end of your payment deferral. This may include assessing income and expenditure, to come to an arrangement with you to enable recovery through the full repayment of the arrears.
If you're in financial difficulty; we'll come to an arrangement to recover you into a sustainable position on the mortgage. Any forbearance arrangements will aim to minimise the risk of possession but if a solution cannot be reached we may go to court and start proceedings to repossess your home.
You may find it helpful to take a look at our payment difficulties guide.
What if I need additional help managing my money and debts due to Coronavirus?
If you’re worried about other debts you should contact your other creditors to discuss your repayments. It’s important to pay essential expenses and priority debts before any discretionary expenses or non-priority debts, and you may find it useful to work out a budget.
Free impartial information and confidential debt advice is available. You may find it useful to visit the FCA’s information page ‘Dealing with financial difficulties during the coronavirus pandemic’ or the Money Advice Service coronavirus support page.
Will a mortgage payment deferral be applicable to customers with Help to Buy loans?
Homes England have stated that homeowners who are struggling to pay interest fees on their Help to Buy equity loans will be offered payment deferrals, this is applicable for Help to Buy customers who are paying interest on their Equity Loans
Help to Buy: Equity Loans are interest-free for the first five years. Therefore, this announcement will apply to those who took out the loan before 31 March 2015.
The Help to Buy Director Will German at Homes England said:
We will do all we can to support Help to Buy customers through this unprecedented period of economic uncertainty. Like other lenders, we will offer payment holidays for those who are struggling to pay interest fees on their equity loans.
We will also offer a range of flexible payment options to defer interest payment for a period. In all cases, we will seek to support households in difficulty.
We understand monthly mortgage payments tend to be the largest outgoing for the vast majority of households. Where households also have equity loan payments under the Help to Buy scheme, we are keen to reassure them that we will offer similar options to their main mortgage lender.
We will assess all cases of hardship on a case-by-case basis. The first step is for customers experiencing difficulty related to Coronavirus to contact their main mortgage lender to discuss revised payment arrangements.
General mortgage questions
What is an Approved Solicitors Panel?
Our Approved Solicitors Panel is made up of a group of solicitors we've worked with before and trust to act on your behalf. Take a look through the pdf to find a solicitor near to you.
If you choose to appoint a firm that is not on our panel, we will require our own partner Solicitor to act on our behalf. You will be responsible for our legal fees in addition to your own legal fees.
What charges might I incur with my Cambridge Mortgage
There may be fees associated with your mortgage from getting it to changing or ending it. We want to make sure you understand the fees that may apply to you, so, we've worked with the Council of Mortgage Lenders and Which? to show these clearly, take a look at the pdf to see all our fees.
My Solicitor isn't on your panel, can they join it?
Solicitors that are using Lender Exchange can join our panel. They'll need to log in at www.lenderexchange.co.uk and apply to join there.
Solicitors not on Lender Exchange can call them on 0344 244 3784 to discuss the application process.
Can I view my mortgage account online?
You can view all your accounts with The Cambridge via our website or money app – it’s simple and secure. To get started, simply call us or pop into your nearest branch to request your User ID and we’ll talk you through the rest.
Where do you offer mortgages?
Our mortgages are available on properties located in England and Wales.
What age restrictions are there on mortgages from The Cambridge?
The minimum age required for a residential mortgage is 18 and 21 for a Buy to Let mortgage. There is no maximum age limit.
Can I get an Interest Only mortgage with The Cambridge?
Interest Only repayment options are available across our mortgage range on loans of up to £500,000 with a maximum loan to value of 70%. Interest Only mortgages are subject to criteria and the suitability of proposed repayment methods – talk to our team to find out more.
How is interest paid on Personal Accounts
Interest on Personal Accounts is paid at the gross rate with no tax deducted.
How is interest paid on Business Accounts
Interest will be paid at the gross rate. The receipt of interest gross by a company will not prevent that interest from being liable to corporation tax. For information regarding tax or how to make a self-assessment tax return, please contact HMRC.
How does the Personal Savings Allowance affect me?
On 6th April 2016, HM Revenue & Customs (HMRC) made changes to the way savers earn interest and pay tax. They introduced a new Personal Savings Allowance. Here you can find answers to the questions you might have about the Personal Savings Allowance.
The introduction of the new Personal Savings Allowance means that from 6th April 2016 most people no longer pay tax on their savings income. Basic rate tax payers have a £1,000 tax-free allowance while higher rate tax payers are able to earn £500 tax free.
From this date, The Cambridge stopped deducting tax from the interest you pay on your savings. If your total taxable income is less than the current £17,000 allowance you will pay no tax at all on your savings income.
If you have previously completed a form to receive interest tax-free (an R85/R105) you will no longer need to do so from April 2016. Interest that relates to periods before April 2016 but paid afterwards will not have tax deducted.
What should I do if I earn savings income over my Personal Saving Allowance?
If you have any savings income over your Personal Savings Allowance you will have to pay some tax on this. HMRC will normally collect the tax by changing your tax code. If you already fill in a self-assessment tax return you should carry on doing this and include any income from savings on your return.
Does the Personal Savings Allowance affect my ISA?
The Personal Savings Allowance does not affect ISAs. Interest from Individual Savings Accounts (ISAs) is paid tax-free so does not count towards your Personal Savings Allowance.
What happens when savings interest rates increase?
When the interest rate on your savings account increases we will places notices in our branches, on our website and in two newspapers within three working days of the change, or we'll let you know within 30 days of the change by email, letter or another form of personal notice.
What happens when savings interest rates decrease?
The interest rate for your savings account might decrease for a number of reasons, you might have a fixed term product that is coming to an end, your rate may be variable and therefore can change at any time or it may be linked to changes in the Bank of England Base Rate.
When the interest rate on your savings account decreases we will tell you about the change, in writing, within 14 days of the change taking place.
Take a look at our Terms and Conditions for Savers for a more detailed explanation.
If you'd like to speak to one of the team about your savings accounts live chat with us, or call on 0345 601 3344.
Does the Personal Savings Allowance affect children's savings accounts?
Children under the age of 18 get tax-free income. If money given by a parent produces interest of more than £100 a year, the interest will be treated as the income of the parent and count towards the parent's Personal Savings Allowance. If the interest is above the parent's Personal Savings Allowance they will have to pay tax on the interest.
This rule does not apply to money given by others, including grandparents. For more information take a look at www.hmrc.gov.uk/childincome or phone the HMRC helpline on 0300 200 3312
What is the interest on my Savings Account?
You can view the interest on your savings account at any time online once you've registered for our online services.
Alternatively take a look at this pdf to find out the interest rate for your variable savings account where the product is no longer available.
If you're looking for the interest rate for a savings account that is currently available take a look at our savings products here.
I've lost my passbook or security information, what should I do?
Don't worry, we've a dedicated number for our customers who've lost their passbook or security information - simply call the team on 0800 587 5295.
The team are available Monday to Friday 8.30am - 8.30pm and on Saturday between 9am and 5pm.
How do I pay into my savings account?
You can simply set your Cambridge savings account up with your bank so you can transfer to your savings as and when you want, the details you’ll need are:
- Sort Code: 20-17-55
- Account Number: 40338346
- Reference: This is your 10 digit Cambridge Building Society account number. You must quote this as a reference to ensure the payment reaches the Account
You could also call the team on 0345 601 3344 – they’re able to take the payment over the phone if you’d prefer.
Managing your account
I’ve registered for the online service in the past but have forgotten my login details
Just call the team on 0345 601 3344 and we will verify your identity and reset your login details for you.
What is a secure message?
Secure messaging allows you to send us an instruction, e.g. request a new passbook for savers or reduce the amount you overpay each month for mortgage customers, instead of giving us a call or going to branch.
How secure are the online services and The Cambridge Money App?
Security is at the heart of all our online services, including the money app. Each item is tested by independent experts to make sure you, your details and your money are safe.
No banking data is stored on your phone.
How can I stay secure online and when using the money app?
There are lots of things you can do to keep safe online;
- make sure that you regularly update the app when new versions become available
- don’t share your login details with anyone
- always logout when you've finished with the money app or your online services
For more hints and tips on staying safe online take a look at our security page
The Cambridge Money App
Can I use The Cambridge Money App?
The money app is available to everyone who uses our online service for their mortgage or savings accounts or has e-Saver accounts.
Where can I download The Cambridge Money App from?
If you have an iPhone you can download it from the App Store
If you have an Android you can download it from Google Play
What do I search for on the App Store or on Google Play?
Search for ‘Cambridge Building Society’, 'The Cambridge Building Society' or 'The Cambridge Money App' and you’ll see The Cambridge logo. Tap on the app and press get or install.
What information do I need to log in to the app?
You’ll need to enter:
- Your User ID (the one you use to access your online service in a browser)
- Your password
- Three characters (from your memorable word)
You’ll then be asked to:
- Set up a five digit passcode
- Enable Touch or Face ID (optional and it is only available on iPhone)
I have a branch based savings account but haven’t registered to get online services
You’ll need to register and log in to our online portal before you’re able to use the money app, call us today on 0345 601 3344 to get set up and running.
What will I be able to do using The Cambridge Money App?
For our online and branch based savings accounts and our mortgage accounts you can:
- Check account balance
- View Transactions
- Change Personal Details
- Send secure messages to The Cambridge
- View mortgage statements generated by The Cambridge
- Find your nearest branch
- Find branch information
- Contact us
- Personalise account names
Online savings accounts are also able to:
- Transfer money to external accounts
- Transfer money to Cambridge accounts
Sort code changes
Why are you changing your sort code?
The UK government is separating private and business banking, you might have heard this referred to as ‘ring fencing’. To ensure our sort code it is not shared with any private banking customers it is changing.
If you would like to read more about the change take a look here.
What is your new sort code?
Our new sort code is: 20-17-55
How will the sort code changes affect me?
Any payments you make to The Cambridge will need to include our new sort code – whether you’re paying into your Savings Account or making a payment to your Mortgage Account.
Our new sort code is: 20-17-55.
The account number will remain the same, it is: 40338346
It’s also important to quote your Cambridge account number when making electronic payments to your account – there is a payment reference field for this.
When do I need to change my sort code by?
All payments made to The Cambridge will need to have the new sort code in place by 22nd January 2021.
Which payments do I need to change my sort code for?
You’ll need to change the sort code for any payments you are making using the following methods:
- Standing order
- Faster payment
- Bank transfer
A payment like your monthly mortgage Direct Debit, which is where we collect the money from you, will not be affected by this – you don’t need to do anything, we’ll change the sort code the payment goes to.
What happens if I use the old sort code?
If you’ve made a payment using the old sort code – don’t panic. For a period of time – up until the 22nd January 2021 the payment will be automatically redirected to our new sort code. After this any payments made using our old sort code will be returned to the account they were made from.
I’ve noticed your sort code change automatically on a payment I made, why is that?
At the moment we’re automatically redirecting payments to our new sort code, there is no need to worry the payment will get to your account. However please make sure you change it before the deadline – 22nd January 2021. Our new sort code is: 20-17-55.
I have payments already set up to pay into my Cambridge Building Society accounts, do I need to change these?
Yes, all payments being made into your Cambridge account must have the sort code amended by 22nd January 2021. Our new sort code is: 20-17-55.
Payments you might need to think about are:
Your salary – do you get your salary paid into your savings account? You’ll need to inform your employer of the change.
Payments from The Department for Work and Pensions (DWP) – if you have any payments made to your Cambridge accounts from the DWP you’ll need to inform them of the sort code change. Our new sort code is: 20-17-55.
You can contact the DWP on 0800 731 0469 for their pensions service; and, 0800 469 0310 for Jobseeker’s Allowance, income support, incapacity benefit or employment and support allowance.
Visit the governments DWP page for more information.
Why is including a payment reference important?
It’s important to include your 10 digit Cambridge account number in the payment reference field of any electronic payments made to your account whether that is for your Savings or Mortgage accounts. If this information isn’t quoted correctly, the funds will be returned to the sender.
Why am I being sent notifications for payments I've made?
We are required to provide a reference to customers making electronic payments, this is to allow tracking of the payment, should our customers need to. We are sending this reference to customers via email or text.
What is Confirmation of Payee?
Confirmation of Payee is a new tool designed to stop payment fraud. It will allow you to check the name of the person holding the account against the sort code and account number - this will alert you to a number of options:
- Match – the name and account details match – proceed with making your payment
- Close match – the name and account details don’t quite match – this could be because of a slight difference in the name, double check the name before making the payment
- No match – the name and account details do not match, if this happens you may have typed the details incorrectly - or someone may have given you different details to try and steal your money
- Unavailable – this is where it isn’t possible to check whether the details match or not. This is what you’ll see when making payments into your accounts with The Cambridge.
Does Confirmation of Payee affect my accounts with The Cambridge?
If you're transferring money from your Savings to your current account (nominated account) or to payees you've set up, you will not see any changes.
However, if you're transferring money into your Savings or Mortgage accounts you might be asked to confirm the payee when doing this.
Why is The Cambridge not showing when I transfer money to my accounts?
Confirmation of Payee - a new tool to protect against fraud, is only available for accounts that have an individual account number and sort code. At The Cambridge we're don't offer banking services, so your savings account or mortgage account doesn't have it's own account number to transfer money in to.
Find out more about paying money into your accounts.
I'm paying into my Savings or Mortgage account and have received a Confirmation of Payee message - what do I do?
When setting up a payment to The Cambridge you may see 'Unavailable' - but don't worry, this is because we're not part of the Confirmation of Payee initiative. Just double check you have entered the correct details which are listed below - and then proceed with your payment.
- Sort Code: 20-17-55
- Account Number: 40338346
- Reference: This is your 10 digit Cambridge Building Society account number. You must quote this as a reference to ensure the payment reaches the Account
What makes me a member of The Cambridge?
You're a member of The Cambridge if you have a Personal Savings or Mortgage account with us.
Members with voting rights are the first named holder on a savings account with more than £100 in, or the first named on a mortgage account with a balance of more than £100.
What does it mean to be a member?
We're a mutual building society, this means that we're owned by our members. You have a say in what we do - your opinion matters to us.
You can come along and meet the team behind The Cambridge, find out what we're up to and have your say at events like our Annual General Meeting.