FAQs - Your questions about coronavirus

I previously agreed a Payment Holiday. What will happen if I want to end my agreement early?

Sam Wooller, Customer Experience Communications Manager
Friday, 30 October 2020

If you want or need to end your agreement early whether that be by early settlement, Voluntary Termination, or any other method the payment holiday will also need to be paid.

Therefore, any early payment calculation will ask that the payment holiday period is repaid first.  This means that:

  • If you are going to settle your agreement early then the payment holiday arrears would need to be paid before any saving on interest would be applied.If you decide to voluntarily terminate
  • your agreement then the payment holiday arrears would need to be applied before the half rule calculation

Similarly, if you want to make an extra payment on your agreement (known as a Partial Early Settlement) at any point, then that payment will go toward clearing the payment holiday arrears before any saving in interest would be applied.