Coronavirus Support | Overdrafts - Personal Banking | Ulster Bank

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Coronavirus

Supporting our overdraft customers through the Coronavirus pandemic

We’re continuing to support overdraft customers

 

 

As the coronavirus outbreak continues, we all face the difficult challenge of responding to the impact it is having on our lives. We are here to support you with your overdraft through these uncertain times.

 

Tell me more

 

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Icon expand What support is available

If you are financially impacted by coronavirus, there are a number of other ways in which we may be able to support you.

Please take a look at our What further support is available? section below where you can access this support.

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Icon expand What happens when these temporary measures come to an end?

 

Once your interest free period comes to an end, interest will go back to being charged on the full overdrawn balance at your contractual rate.  We will remind you of the exact date that the period will end, as well as the contractual interest rate which will apply to your arranged overdraft.

You can use our overdraft cost calculator to check what your interest rate will be and what an overdraft would cost you based on your circumstances when the temporary measures end.

If you’re still worried about the cost of your overdraft after your interest free period ends, there are a number of ways in which we may be able to support you.

Please take a look at our What further support is available? section below where you can access this support.

The temporarily reduced rate is not a change to your contractual rate. You may see a higher interest rate when you check your account, but don’t worry we’ll only charge the reduced rate.

Still struggling financially?

 

We understand that the current coronavirus situation has financially impacted some of our customers.  We want to help. If you’re struggling financially longer term, you can access further support below.

 

More help with managing your money

More about our overdraft support

What further support is available?
 

What support is available to help me manage my money?

If you are worried about the cost of your overdraft, we’re here to help. There are a number of ways in which we may be able to support you:

 

  • You could consolidate your overdraft debt into a Debt Consolidation Personal Loan and only have one payment to make each month (eligiblity criteria applies). This option may impact your ability to obtain credit in the future, and if you track your credit score, you might find it starts to decrease.
  • Use our Overdraft cost calculator to see what an overdraft would cost you based on your circumstances. This will not harm your credit score.
  • Book a Financial Health Check appointment with one of our highly trained senior personal bankers who may be able to suggest ways to help you take control of your finances.

What support might be available if I’m struggling financially?

If you know your finances won’t, or are unlikely to improve, we have a number of options available to you. This may include setting up a repayment plan, or placing a temporary hold on your account so you have some time to seek independent financial support.  

 

These options may impact your ability to obtain credit in the future, and if you track your credit score, you might find it starts to decrease.

 

We understand things are a little uncertain at the moment, so we’ll need to get a better understanding of your current financial situation, you can do this by using our online affordability tool. 

 

More information around what to expect when you contact us, independent debt advice, and how to access our online affordability tool can be found by visiting our Struggling financially page.

What support is available outside of the bank?

There is a range of support on offer from third parties outside of the bank. These services are available online or by telephone, and some services may also be available face-to-face.

 

If you are struggling with your finances, you can get free debt advice. We partner with PayPlan (a third party company), who can offer you free confidential advice for all of your debts. 

 

Start your journey with PayPlan

 

Other independent organisations who can help

Citizens Advice

Free advice on debt, benefits, housing, legal matters, employment and general consumer advice.

 

Money Advice Service

Free Money Navigator tool which gives you action plans based on your own situation.

 

Shelter

Free advice on housing, debt, benefits, eviction & homelessness.

 

National Debt Line

Free and confidential advice on debt.

 

Financial Conduct Authority (FCA)

Find out what you can do to help yourself get back on track if you are experiencing a change in financial circumstances due to coronavirus (COVID-19).

More information on your existing support
 

More information on your existing support

 

If we've already agreed an interest free period on your overdraft as part of the coronavirus support on or after 2nd July 2020, this will apply to your arranged overdraft for a period of 3 months from the date of your application. We’ve also kept your interest at a temporary reduced rate, on any borrowing above your interest free amount for the same 3 month period.

 

It’s important to remember that after the period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance.

 

If you’re still worried about the cost of your overdraft after your interest free period ends, there are a number of ways in which we may be able to support you.

Please take a look at our What further support is available? section where you can access this support.

If you've requested an interest free amount, we've also reduced your interest rate

If you requested the interest free amount, we also reduced the overdraft interest rate that you’ll pay for any borrowing above your interest free amount for the same period.

 

The interest rate was the temporary reduced rate that was in place prior to 7th August 2020. Compare your contractual and temporary reduced rate.

 

Please note, this isn’t a change to your overdraft terms.

What should I do when my interest free period is ending?

Before your interest free period ends, we’ll remind you of the exact end date, as well as the contractual interest rate which will apply to your arranged overdraft.

 

Please remember that after the interest free period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance.

 

If you can afford to maintain your existing overdraft, then you don’t need to do anything.

 

If you’re concerned about being able to afford your existing overdraft after the interest free period ends, there are a number of ways in which we can help. Please visit the What further support is available? section on this page where you can access further support. If you do nothing about your financial situation then there is a risk that it could get worse.

How will I know when my interest free period is ending?

If your interest free period is coming to an end, then don’t worry about forgetting when this will happen. We will remind you of the exact date that the period will end, as well as the contractual interest rate which will apply to your arranged overdraft.

 

If you’re still worried about the cost of your overdraft after your interest free period ends, please visit our What further support is available? section on this page where you can access further support.

How long will it be interest free?

If we’ve already agreed an interest free period on your overdraft as part of the coronavirus support on or after 2nd July 2020, this will apply to your arranged overdraft for a period of 3 months from the date of your application. We’ve also kept your interest at a temporary reduced rate, on any borrowing above your interest free amount for the same 3 month period.

 

It's important to remember that after the period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance.

Will the interest free amount apply if I go into an unarranged overdraft?

No. The interest free amount only applies to arranged overdrafts. However, the temporary reduced interest rates are applicable to both arranged and unarranged overdrafts. Our interest on unarranged overdrafts is capped at £17.25 per month with a maximum of £20 on unarranged borrowing per month including unpaid item fees.

What are the lower levels of interest that temporarily apply alongside the interest free amount?

The temporary lower levels of interest are the overdraft interest rates we are offering to customers to support those financially impacted by the coronavirus pandemic. This rate depends on the account type you hold with us and is lower than the standard rate in your account terms and conditions. 

 

Whilst using our temporary coronavirus support, most customers will pay Representative 19.89% APR (variable) or 14.89% APR (variable), rather than Representative 39.49% APR (variable). Reward Black customers will pay Representative 14.89% APR (variable), rather than moving to Representative 19.49% APR (variable). 

 

You can find more details on our rates comparison page.

Our overdraft range

Arranged overdrafts are available to customers who have an eligible Ulster Bank current account, are 18+ and a UK resident. You must pay your salary or regular amount into your current account.

Already have an overdraft?

If you’ve got an arranged overdraft limit on your account that you feel is too low or too high, we’ll show you how to change it.

Manage your overdraft

Looking to apply for an overdraft?

An arranged overdraft is a short-term safety net for your current account. Read more about our arranged overdrafts and apply.     

Apply for a new overdraft
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