Coronavirus Support | Overdrafts - Personal Banking | Ulster Bank

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Coronavirus

How we're helping our overdraft customers through the Coronavirus pandemic

Request up to £500 interest free and a lower interest rate

 

 

If you’re financially impacted by coronavirus, you will have until 31st October 2020 to request £500 interest free on your existing arranged overdraft (or up to your existing arranged overdraft limit if lower than £500) for a 3 month period. 

We'll also reduce your interest rate on any borrowing above the interest free amount for the same period.

 

Tell me more

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Icon expand As well as an interest free amount, we'll also reduce your interest rate

If you request the interest free amount, we'll also reduce your overdraft interest rate that you'll pay for any borrowing above your interest free amount for the same period.

The interest rate will be the temporary reduced rate that was in place prior to 7th August 2020. You may see a higher interest rate when you check your account, but we’ll only charge the reduced rate. Compare your contractual and temporary reduced rate.

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

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Icon expand What if I've already requested the interest free amount?

If we’ve already agreed an interest free period on your overdraft as part of the coronavirus support on or before 1st July 2020, we’ll automatically extend this for you for a further 3 months from when your interest free period was due to end - so, you don’t need to reapply.

We’ll also keep your interest at a temporary reduced rate, on any borrowing above your interest free amount for the same extended time period.  This will happen automatically. If we have a mobile phone number for you, you should have received an sms in July to confirm this.

It’s important to remember that after the further 3-month period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance. 

Compare your contractual and temporary reduced rate.

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Icon expand These are temporary measures to support customers who are financially impacted by coronavirus

It's important to remember that after the 3 month period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance. 

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

 

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Icon expand How do I make the request?

If you have an overdraft with us, just fill in a few details to make the temporary interest free and lower rate request.  Have your account number and sort code to hand. 

Make your request

Still struggling financially?

 

We understand that the current coronavirus situation has financially impacted some of our customers.  We want to help. If the ways we're temporarily supporting our customers outlined above will not help you in the long-term, please visit Struggling financially? where  you can read about further support

More information on our overdraft support

What measures of support are you providing to customers impacted financially by coronavirus?

Customers financially impacted by coronavirus are eligible to apply for temporary measures of support. You can request £500 interest free on your existing arranged overdraft (or up to your existing arranged overdraft limit if lower than £500) for a period of 3 months. 

 

When you make this request, we will also reduce your interest rate on any borrowing above your interest free buffer. This temporary reduced interest rate will apply to any overdraft borrowing above the interest-free buffer for a period of 3 months. 

 

It’s important to remember that after the 3 month period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance. 

 

You can have a quick check here of your contractual rate and reduced interest rate

 

How do I request up to £500 interest free overdraft on my account?

If you are financially impacted by coronavirus, you will have up to 31st October 2020 to request £500 interest free on your existing arranged overdraft (or up to your existing arranged overdraft limit if lower than £500). This is a temporary measure and will be interest free for a 3-month period from your application date. 

 

When you make this request, we will also reduce your interest rate on any borrowing above your interest free amount. This temporary reduced interest rate will apply to any overdraft borrowing above the interest free buffer for the same time period. 

 

It’s important to remember that after the 3 month period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance. 

 

Just fill in a few details to make the temporary interest free and lower rate request.  Have your account number and sort code to hand. 

What if I have already applied for the interest free amount?

If we’ve already agreed an interest free period on your overdraft as part of the coronavirus support on or before 1st July 2020, we’ll automatically extend this for you for a further 3 months from when your interest free period was due to end - so, you don’t need to reapply.

 

This means this will be in place for 6 months. We will also automatically keep your interest rate at the same lower rate rather than the standard contractual rate. This will apply to any overdraft borrowing above the interest free amount for the 6-month period. If we have a mobile phone number for you, you should have received an sms in July to confirm this.

 

It’s important to remember that after the further 3-month period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance. 

How much can I apply for and when will the interest-free period start?

If you have an arranged overdraft you can either request £500 interest free or the limit of your arranged overdraft interest free, whichever is lower.  This means that if your existing arranged limit is lower than £500, you will pay no interest on this borrowing, and if your arranged overdraft limit is over £500, you will not pay interest on the first £500 of borrowing. 

 

You can apply for this up to 31st October 2020.

 

The changes to your overdraft will be applied within four working days of making the request.

How long will it be interest free?

Your interest free period will be available for 3 months from the application date.  If you do not want to incur interest after this date, we would recommend that you repay any overdraft borrowing by the end of the 3-month period.  

 

Interest will be charged at the standard rate on the full overdraft amount after the 3-month period.

Am I eligible for a new interest free overdraft amount?

You can request a new arranged overdraft with an interest free amount if you are financially impacted by coronavirus. However, this will be subject to normal credit checks to determine if you are eligible for an overdraft and how much that may be. 

 

You can check whether you are likely to be approved for an overdraft before you apply by using our eligibility checker. It takes just a few minutes and won’t impact your credit rating. This is indicative only and does not guarantee you will be offered an overdraft.

 

Or, follow our standard New Overdraft process to be assessed if you are eligible for an overdraft.

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

No. The interest free amount only applies to arranged overdrafts. But it's good to know 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 I would get temporarily 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. An application can be made until 31st October 2020 for 3 months' support. 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) for that period, rather than our standard rate of Representative 39.49% APR (variable). uFirst Private customers will remain at Representative 14.89% APR (variable), rather than moving to Representative 19.49% APR (variable). Please note, this isn’t a change to your overdraft terms & conditions. 

 

You can find more details on our rates comparion page

Is this the right option for me?

If you feel you need help during these difficult times, a temporary interest free arranged overdraft may provide some short-term support. An overdraft is designed to be used to help with temporary shortfalls in income and not for longer term spending needs. 

 

Please remember that an overdraft represents a debt and will have to be repaid. At the end of the interest free period, interest will be applied on the full overdraft amount in line with your terms & conditions unless we tell you otherwise.

 

If the ways we're temporarily supporting our customers outlined on this page will not help you in the long-term, please visit Struggling financially? where you can read about further support

Other ways we can help

Already have an overdraft?

You can decrease, remove or apply to increase your overdraft

Manage your overdraft

Looking to apply for an overdraft?

Read more about our arranged overdrafts and apply     

Apply for a new overdraft
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