An option for repayment is to add the deferred payments from your payment deferral and any associated interest to your mortgage balance. This means you will be given a new, increased monthly instalment and the cost of the payment deferral would be spread over the remainder of your loan term.
This is the standard repayment option that will be applied at the end of your payment deferral unless you contact us to let us know that you want to choose one of the other repayment options.
Before the end of your payment deferral you will get a letter from us explaining the options available and this will include the amount that your monthly payments will increase to. If you want to select this option you do not need to contact us.
If you've previously arranged to make regular overpayments to reduce your balance, pay any costs, fees and charges, historic arrears, interest accrued by arrears and costs fees and charges and/or increased your payments to pay the additional interest that accrues from changing your payment date, this will not be included in your repayment amount. Put simply, this repayment option is based on how you will repay your deferred contractual monthly payments and associated interest and does not consider any other arrangements you may have had in place.
Please call us on 0330 433 2258, to discuss how this would impact your new monthly payment. We’re here from 9am to 5:30pm, Monday to Friday.
Below is an example of the impact of a 3 month payment deferral where the deferred payments and associated interest are repaid over the full term of the mortgage.
Please be aware that this example payment increase per month is based on calculations for an account which has never been in arrears and has been recently funded.
Example
Sam has a repayment mortgage of £107,530 with an interest rate of 7.44%, and is 46 months into a 25-year term.
- Original monthly payment: £790.45
- Original total repayable (including £110 redemption administration fee): £237,245
- New monthly payment after 3 month payment deferral: £809.22
- New total repayable (including £110 redemption administration fee): £239,584.92
- Additional amount repayable due to payment deferral: £2,339.92