Mortgage payment holidays

Coronavirus (COVID-19)

We understand that Coronavirus (COVID-19) is creating challenging times and you may be worried about money.

In line with the package of financial support announced by the Chancellor of the Exchequer, we are committed to supporting customers and landlords who experience difficulty with mortgage payments as a result of coronavirus. This includes payment holidays of up to three months.

If you are concerned about your financial situation please get in touch with us.

We want to do what we can to help you, and to find out what is best for you from the different payment options we can offer. We need to gather some information about your individual circumstances to be able to do this.

Please download and complete the form below and email it to PandemicPaymentsConcessions@cumberland.co.uk, so that we can look at your individual circumstances and provide support as soon as possible. If your enquiry is urgent, you can call us on 01228 403 141.

Q&A

  • How do ‘payment holidays’ work?

    A payment holiday reduces your monthly mortgage payment to zero. However, interest will continue to accrue on your mortgage balance during the payment holiday, and this, along with the outstanding capital you have borrowed, will need to be repaid in the existing mortgage term.

    This means that, when the payment holiday ends, either your monthly mortgage payments will need to increase for the remainder of the mortgage term to ensure you repay the capital and interest in time, or you will need to make a lump sum to clear the interest and payments that should have been paid if you had not received the mortgage holiday.

  • How do I apply for a payment holiday?

    We will gather a limited amount of essential information from each customer to be able to make a decision on the best way to support customers in as timely and straightforward a way as possible.

    Please download the form on this page and email it to PandemicPaymentsConcessions@cumberland.co.uk

    If your enquiry is urgent, you can call our customer care team on 01228 403141, but please bear in mind that we are receiving a high number of calls regarding payment holidays, so thank you for your patience.

  • Are all customers eligible for a payment holiday?

    No, this is one of a number of options that lenders can offer. The offer of a payment holiday can be made available to customers not already in arrears and up to date with payments. Under FCA rules, lenders must ensure that any forbearance offered enables recovery through full repayment of arrears, minimises the long-term impact of arrears, and that the mortgage remains affordable and sustainable. Overall, forbearance needs to minimise the risk of possession. This is why payment holidays are generally short-term.

    For customers who are already in arrears or in financial difficulty, we will consider the full suite of forbearance options that are ordinarily available to customers under existing rules. We will look at customers’ individual circumstances and offer support on a case-by-case basis.  We are ready and able to offer support, we would encourage customers to contact us at the earliest possible opportunity to discuss the options available to them.

    We will help customers the best way for the individual, but an automatic payment holiday may not always be the most suitable approach and may not be required by all customers.

  • But lenders are only offering a short-term measure – what about customers who may be likely to need support longer term or help to recover to their previous position after the payment holiday expires?

    At the end of the payment holiday period, the standard mortgage terms regarding payments will apply. We will get in touch with you to assess your circumstances, including reviewing your income and expenditure, and try to come to an arrangement with you to enable you to return to full repayments.

    If appropriate and we are able to do so, we may be able to agree a further period of forbearance or other measures to support you for a longer period of time.

    However, as we have mentioned above, in the FAQ “How do ‘payment holidays’ work", interest on your mortgage will continue to accrue during any payment holiday or forbearance measures, and so any measures allowed will increase the total amount you repay on your mortgage making it more expensive in the long term.

  • How will this affect my credit score?

    Arrears that are accrued due to Coronavirus payment arrangements will not be reported to the Credit Reference Agencies.

  • What if I don’t own my property but rent instead?

    You should contact your landlord or managing agent if you have problems paying your rent.

  • What if I’m already in arrears?

    You should continue to speak to us and we will review existing arrangements if there is a change in circumstances.