To make a reduced payment you'll need to apply for a further loan repayment break. You can then send payments based on what you can afford during the repayment break.
Step 1 - Loan repayment break
When you request a further repayment break we'll show you how your missed payments will build over the next 3 months.
- If you are able to pay your missed payments in full at the end of the repayment break, then you will not be charged any additional interest.
- If you are unable to pay this back in full at the end of the break and if you haven’t missed any payments prior to requesting a repayment break, we may offer you an extension to your loan term to repay the missed payments. We will charge additional interest if the loan term is extended.
Your credit file won't be affected by taking a repayment break, however lenders may take into account other information when making future lending decisions, including, for example, information provided by applicants or bank account information.
Example of missed payments calculation
This is only an example to outline how missed payments will build on a repayment break, when you make reduced monthly payments.
Normal monthly payments = £150
Reduced monthly loan payment = £50
Missed payment each month = £100
Total missed payments after 3 months = £300
Total missed payments after 6 months = £600
Step 2 - Making reduced payments
If you can afford to make some or all of your loan payments, it's important that you do so. You can make a payment at any stage to make up for the payments you’ve already missed during your repayment break. These payments will reduce the total amount of interest that you will pay and may reduce the length of your loan.
You won’t be charged an early repayment charge for making up your missed payments, as long as the amount paid doesn’t exceed the payments that you have already missed during your repayment break.
You can make a payment through our mobile app or Anytime Banking. You'll simply need your loan account number and sort code which you can find on your account summary screen. You can then add your loan account as a "new payee".
If you can afford to pay something you should as this will reduce what you owe.
How to apply for a further repayment break
If you want to apply for a further repayment break, Cora your digital assistant can help you sort it. Ask Cora via the 'Need Help' button on the right-hand side of the page and quote 'coronavirus loan' in your message.