Which banks are giving mortgage holidays and bigger overdrafts if you’re struggling due to coronavirus
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AS coronavirus continues to spread across the UK, more people may financially struggle as they take time off work to self-isolate.
Some workers are being asked to take unpaid leave, while those who pick up the virus may have to get by on Statutory Sick Pay.
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This could leave UK workers unable to meet mortgage payments, pay back loans on time or even without enough money to pay bills and buy food.
Fortunately, chancellor Rishi Sunak said this week that mortgage lenders will offer a three-month "mortgage holiday" for those in financial difficulty due to the outbreak.
It follows some banks already announcing emergency measures that could help if you're unexpectedly low on cash because of coronavirus.
Customers have also been promised support with loan payments and the option to waive fees on fixed savings accounts.
The payment holiday won’t be automatic though – it will be up to lenders to decide if it's right for customers on a case by case basis.
The UK's three credit reference agencies - Equifax, Experian and TransUnion - have all confirmed that while payment holidays will be recorded on credit reports, they shouldn't impact your score.
Here are the policies of the major banks that could help you when times are tough and what they are offering.
Lloyds Bank, Halifax, Bank of Scotland and MBNA
The banks under the Lloyds Banking Group umbrella have several measures that could help customers affected by coronavirus.
For Lloyds Bank, Halifax, Bank of Scotland and MBNA customers this includes:
- No fees for missed payments on credit cards, loans and mortgages
- Payment holidays on mortgages and loans with additional support provided where customers need it
- Emergency access to fixed term savings
- Increased deposit limits for online banking to help people who may not able to access branches e.g. up to £500 using cheque scanning.
A spokesperson said: "Being there for our customers when they need us is our priority.
"We are making some temporary changes over the coming weeks, and will be providing individual support to customers who need extra help.”
Royal Bank of Scotland (RBS) and Natwest
Banks under the RBS group have a range of options to help customers in financial difficulty.
These include:
- Mortgage and loan repayment deferral for up to three months
- Closing fixed savings accounts to access cash with no early closure charge
- Refunds on credit card cash advance fees
- Customers can apply for increased temporary credit card limit
- Customers can request an increased cash withdrawal limit of up to £500 (debit card)
An RBS spokesperson said: “We understand that there may be circumstances where a personal customer may fall into financial difficulty as a result of the impacts of coronavirus, for instance, loss of income.
“We will look to understand each customer’s situation on a case-by-case basis and can offer a number of options to help them manage their finances.
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“We would encourage any customer experiencing financial difficulty to get in touch with us.”
You can get it contact with RBS on 0345 3030 344.
You can call NatWest on 0345 3030 299.
Barclays
Barclays has a range of measures that can help customers impacted by coronavirus including:
- Three-month payment holidays for loans, mortgages and credit cards
- Switching mortgages from repayment to interest-only
- Removing penalty charges to access fixed savings accounts early
- Enabling customers to apply for a temporary increase on their credit card limit
The bank is encouraging customers to speak to our specialist teams who can help those facing financial difficulty.
A spokesperson said: “We have decided to offer customers who are potentially facing financial difficulty, a number of options to support them through this time.
“These include repayment holidays for up to 90 days and switching from capital repayment to interest only for up to 12 months.
“We encourage customers to get in contact with us at the earliest opportunity to discuss the most suitable solution.”
The bank also has a range of measures for SME customers including:
- 12 month capital repayment holidays on existing loans over £25k
- Increased or new overdraft facilities and other working capital solutions
- Access to Funding – 360,000 SMEs have pre-assessed lending limits which can be accessed via the Barclays app or online banking
- A £14 billion lending fund launched last year
All Barclays customers can contact the bank either by phone or online.
You can find the best ways to get in touch here.
HSBC
HSBC has a range of measures in place to support customers who may impacted by the coronavirus.
These include:
- Reduced or deferred payments for mortgages
- The option to extend the remaining term of the mortgage, switch rates or switch part or all to interest-only mortgage arrangements
- A three month mortgage payment holiday
- Deferred payments on personal loans and credit cards for up to three months
- Early access to fixed rate savings accounts without closure charges
- A temporary £300 interest free buffer on overdrafts for three months
- Reduced payments on unsecured debt or breathing space to defer payments due
- Temporary increase in credit card and overdraft limits.
Santander
Santander has a team of experts on hand to support customers who have been impacted by the coronavirus.
The bank will look at each customer’s situation and will explore ways to support them depending on their specific circumstances.
Support for customers can include the option to defer or reduce repayments that are due.
Anyone who has been affected can talk to the bank on 0800 9 123 123.
TSB
TSB has several measures in place to support customers that may impacted by Coronavirus.
These include:
- Mortgage customers with TSB may apply for a repayment holiday for up to two months. For new customers joining TSB, mortgage advisers and brokers will work with customers and understand their individual position.
- Savings customers will be able to waive early closure fees on TSB's Fixed Rate Isa products
- Fixed Bond customers will be allowed to surrender their policies early to gain access to their money.
- Credit card customers may request an emergency credit limit increase.
- Current account customers can apply for an increased cash withdrawal limit for up to £500 or more (depending on each individual case).
- All personal loan products have repayment holidays available as standard for any customers who need short-term relief on their outgoings.
- Business banking customers should contact TSB. TSB will assist each customer according to their individual case.
You can contact TSB on 03459 758 758.
Virgin Money, Clydesdale Bank and Yorkshire Bank
Virgin Money has a range of actions available that it can take to assist customers depending on their individual circumstances.
For mortgage and personal customers this includes:
- Payment holidays
- Debt restructuring
- Temporary increases in credit (overdrafts / credit cards limits)
- Offering support through debt advice agencies.
For business customers the bank is urging anyone who is worried to contact it as soon as possible.
A spokesperson said: "We recognise the cashflow of businesses may be disrupted in the current environment and are committed to providing prompt and appropriate assistance to help support customers while they implement their contingency plans.
"We will continue to view funding requests favourably provided the underlying business remains sound, and can consider a range of options to help our business customers, including payment holidays, emergency loans, overdrafts or overdraft extensions."
Both business and personal banking customers can contact Virgin Money by phone or online.
The number you need will depend on what kind of account you have - but you can find the full list here.
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Metro Bank
Metro Bank says that customers can get in touch if they are struggling and it will try to help.
A spokesperson for Metro Bank said: “We appreciate that coronavirus may impact our customers and their financial needs.
"Our customers are our number one priority, so if they do need any additional support, we’re here to help and we’ll assess each request on a case-by-case basis and make a decision based on the customer’s needs.”
You can call the Metro Bank customer contact centre on 0345 080 8500.
Post Office
The Post Office is in a slightly different situation to traditional banks as products are provided by the Bank of Ireland UK.
It is recommending that any customers who may be impacted by coronavirus get in contact to discuss their situation.
A spokesperson said: “Where customers are financially impacted by coronavirus, Bank of Ireland UK, our mortgage provider, has a range of support including repayment relief or flexible arrangements on mortgages or loans.
"We would encourage customers who think they may need support to contact us using the usual customer service number for their product as soon as possible to discuss the support available to them.”
Co-operative Bank
The Co-op bank says that it has a range of measures that can help customers on a case by case basis.
A spokesperson said: "We know this is a worrying time for our customers and we want to reassure them that we have a range of support options available.
"We’d encourage customers who have concerns to talk to us about their needs and then we can offer the right support based on their individual circumstances."
Co-operative Bank customers can call on 03457 212 212 for advice.
First Direct
First Direct has a package of support for customers as they tackle the financial impact of Covid-19.
These include:
- Giving customers early access to fixed rate savings accounts without closure charges.
- Support for customers with unsecured debt by offering breathing space, tailored to individual customer need.
- The option to apply for an increase in credit card and overdraft limits.
- The opportunity to apply to extend the remaining term of their mortgage or switch their rate.
Customers who would like more information can visit the help section on their website.
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