Getting help with your Mortgage during Coronavirus

We know Coronavirus is leaving some of our members unsure of whether they’re able to rely on their income. We're committed to helping during this time and are supporting members with Mortgage Payment Deferrals 'Mortgage Payment Holidays'. Find out whether this is right for you, and the different options we have to support you. 

 

Are you concerned about meeting your Mortgage payments?

If you're concerned about whether you’re able to make your mortgage payments you could be eligible for a Mortgage Payment Deferral. This is specifically for customers whose income is affected by Coronavirus, and they're unsure of how they can meet their mortgage payments.

Under the Financial Conduct Authority Payment Deferral Guidance (November 2020) you can apply for a payment deferral up until 31st March 2021, initially for up to three months and to a maximum of six months. 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 payment deferrals can only cover payments up to and including July 2021. 

However, if you’re able to keep paying it will be in your best long-term interest to do so. Payment deferrals should only be taken when absolutely necessary as you’ll have to pay more over the lifetime of your mortgage.

There are FAQs below which may answer questions you have about deferring your mortgage payment, and you can get an indication of how it may impact your monthly payments by using the MoneySuperMarket CalculatorYou may also find it helpful to use the Money Advice Service’s Money Navigator tool. This tool has been specifically designed to help consumers whose finances have been impacted by the Coronavirus pandemic, helping you to find out what you’re entitled to and where to go for free financial support.

 

How do I use the MoneySuperMarket 'Taking a Mortgage Payment Holiday' calculator?

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 2019 mortgage statement you’ll be able to see the repayment type and term that was remaining on your mortgage as at 31st December 2019. 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.

 

Do you already have a Mortgage Payment Deferral set up?

If you already have a Mortgage Payment Deferral 'Mortgage Payment Holiday' set up, don't worry we'll be in touch prior to the expiry of your current agreement to outline the options available to you.

 

Do you need support for longer?

Restarting your mortgage payments will be in your best interests, however if you've reached the end of your initial Mortgage Payment Deferral and your income is still impacted by Coronavirus you can extend this to cover a maximum of six months in total, to cover payments up to and including July 2021. 

You have until 31st March 2021 to apply for an extension to your payment deferral, but can apply for an extension after this date as long as your initial payment deferral and the extension run consecutively.

If you choose to do this the interest will continue to accrue and will be added to your mortgage balance each month during the payment deferral. It will increase your monthly payments and the total amount you pay back over the lifetime of your mortgage. 

There are FAQs below which may answer questions you have about deferring your mortgage payment for an additional amount of time, and you can get an indication of how it may impact your monthly payments by using the MoneySuperMarket Calculator.

 

To request an extension to your Mortgage Payment Deferral because your income will continue to be affected by Coronavirus simply complete our 'Need Help?' section below. Please advise us of how much you can afford to pay, simply enter the number 0 if you need a full mortgage payment deferral. If you’ve already had your maximum six months’ Mortgage Payment Deferral under the government guidelines and you need support for longer, speak with the team on 0345 601 3344 to arrange an appointment with one of our experts.

 

If you're having difficulties in paying your mortgage and it's likely to be longer term or it's not due to Coronavirus take a look at our payment difficulties guide or speak with the team on 0345 601 3344 to arrange an appointment with one of our experts.

FAQs

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Mortgage payment difficulties due to Coronavirus
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.

Mortgage payment difficulties due to Coronavirus
Will a payment deferral affect my credit file?

If you’re up to date with payments and we grant you a payment deferral because your income has been impacted by Coronavirus, this will not be reported on your credit file. 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 after the deadline for applying for a mortgage payment deferral, we’ll work with you to come to an arrangement to get you back on track, but any missed payments after this will report on your credit file.

Mortgage payment difficulties due to Coronavirus
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.

Mortgage payment difficulties due to Coronavirus
What affect will a mortgage payment deferral have on my mortgage payments?

If you’d like an approximate indication of the impact a mortgage payment deferral will have on your monthly payments 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 2019 mortgage statement you’ll be able to see the repayment type and term that was remaining on your mortgage as at 31st December 2019. 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.

Mortgage payment difficulties due to Coronavirus
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.

Mortgage payment difficulties due to Coronavirus
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.

Mortgage payment difficulties due to Coronavirus
What happens at the end of a 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.

Mortgage payment difficulties due to Coronavirus
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.

Mortgage payment difficulties due to Coronavirus
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 the normal rules will re-apply after 31st January 2021.

Mortgage payment difficulties due to Coronavirus
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.

Need help?

My name is , I need
to , I can afford to pay £ per month over this period.
My current mortgage payment agreement is due to end on
my next mortgage payment is due on ,
I able to make this payment of £
and my account number is
Please call me on +44(0) , I confirm by submitting this form that I’ve read the information above about extending a mortgage payment deferral agreement, and am happy to proceed with this request. We will only use the information you provide to respond to your request. Your personal information will not be used for any other purpose.