Repayment holidays

Take some time out with a repayment holiday

When you find that things aren’t going to plan, then a bit of financial flexibility can sometimes help.

Once you’ve made the first monthly repayment on your loan, you can ask us for up to two one-month repayment holidays every year of your loan.

Repayment holidays are subject to approval, and they can’t be taken in consecutive months. If you have a joint loan, either of you can arrange your repayment holiday..

 

You can request a repayment holiday at any time, though repayment holidays are subject to approval. To qualify, you should:

  • Have made at least one repayment, and have a direct debit in place.
  • Be up to date with your loan repayments.
  • Not be in the process of making a loan protection insurance claim.
  • Have at least 30 days remaining on your loan term.
  • Call us a week before your next repayment, otherwise it will be applied to the following month.

A repayment holiday will extend the length of your loan, and we will continue to charge interest on your outstanding loan balance, so you will pay more interest overall.  We will advise you of the additional interest that will apply when you call.

Repayment holidays aren’t intended to help solve money troubles, so if you are struggling to make your monthly repayments we have a range of options that may be able to help you. Give us a call and we’ll happily talk through the options with you.

A repayment holiday will extend the length of your loan. We will continue to charge interest on your outstanding loan balance, so you will pay more interest overall. We will advise you of the additional interest that will apply when you call.

Taking a repayment holiday will extend the length of your loan and we will continue to charge you interest on your outstanding loan balance. We will advise you of the additional interest that will apply when you call.

0800 096 1282

Lines are open between 8am and 10pm, seven days a week.

Please call us at least a week before your next loan repayment is due for this to be applied to your next payment.

 

Glossary

Early Settlement Adjustment

You can repay your loan in full or in part at any time during the repayment period. If you choose to settle your loan before it’s completed its full term some of our loans may charge an early settlement adjustment.

If you have taken out a Flexible Loan you agree to repay the capital plus the interest as it accrues. If you pay off your loan in full before the end of the agreed term, we will calculate what you owe us at the time which will include capital plus interest accrued but no additional charge.

If you have taken out any of our other loans, the amount you agree to repay includes interest that is charged to the end of the loan term. If you make an early settlement we will reduce the charge for credit you have agreed to pay us which means you would not have to pay all of the interest. This reduction may be adjusted by up to 58 days interest - this is the early settlement adjustment.

Please see Managing Your Loan for more details.

APR

APR stands for Annual Percentage Rate and is the total charge for credit. It includes the interest rate plus any fee that we charge for the loan as a whole.

You can use APR to compare the total cost of different loans. We’ll always tell you the APR for your loan before you sign an agreement.

Repayment

With a loan, we give you a sum of money up front and each month after that you pay back some of what you owe. That monthly sum is called your repayment.

With our personal loans, your repayments are fixed. That means you’ll owe the same amount each month for the entire life of your loan.

Credit rating

Your history with credit is summarised into your credit rating. Having a long history of paying your loans, bills and credit cards on time means you’ll have a high credit rating. Missing payments or defaulting on loans, borrowing and bills results in a lower score.

When you apply for a loan or credit card, the financial institution will look at your credit rating to see how risky the deal would be for them. They use this information to help decide whether to offer you credit, and if so, what kind of interest rate and terms you’ll receive.

Ways to apply

On the phone

A repayment holiday will extend the length of your loan and we will continue to charge you interest on your outstanding loan balance.

0800 096 1282

Lines are open between 8am and 10pm, seven days a week

Please call us at least a week before your next repayment is due for this to be applied to your payment.