The Debt Respite Scheme, known as 'breathing space', launched in May 2021. The scheme gives those with debt the right to legal protections from those they owe money to.
The Scheme is only available to customers in England and Wales, visit our Independent help and support page to find information on the support available across the UK.
At Santander, we do everything we can to support customers entering debt respite breathing space.
We've answered some questions about The Scheme on this page. This should make it clear what the scheme is about and how it might help you.
If you're worried about money, visit our if finances are a struggle page to see how we can support you.
The Debt Respite Scheme
The Scheme helps people receiving independent financial advice. It gives an amount of time to put a plan in place to get their finances back in control. During this time, you'll have legal protections from the lenders you owe money to.
There are two types of debt respite breathing space:
- Standard breathing space - for anyone with problem debt, lasts up to 60 days.
- Mental health crisis breathing space - only available if you're receiving mental health treatment. It lasts for as long as you're receiving treatment, plus 30 days. There's no time limit on this type of breathing space.
To get debt respite breathing space you must be taking independent financial advice, with the aim of finding a solution to financial difficulties.
During debt respite breathing space, you need to keep making your monthly payments and stay within any agreed limits.
A debt respite breathing space can only be started by:
- An independent debt advice provider. The provider must be regulated by the Financial Conduct Authority.
- A local authority (where debt advice is provided to residents).
You can find providers on our independent help and support page.
If you and a provider agree that debt respite breathing space is right for you, you don't need to do anything else. Your provider will tell us which accounts they want us to apply debt respite breathing space to. Once we know, we'll update our systems, confirming you're in debt respite breathing space.
Your provider will tell you what you need to do, and what you can expect from us.
During debt respite breathing space
Once we've updated our systems we'll send you a letter confirming the date the debt respite breathing space started, and on which accounts.
Your provider should explain that during debt respite breathing space you need to:
- Keep making your monthly payments.
- Stay within any agreed overdraft or credit limit.
Debt respite breathing space is different depending on what account you have. The table below gives you more information on the difference.
Santander overdraft (including Business Banking current account and Corporate current account).
- From the date debt respite breathing space starts, we'll stop charging you interest on your overdraft.
- We'll stop any charges related to the overdraft. You may be charged fees that aren’t related to this, such as account fees.
- Fees which you incurred before the start of your debt respite breathing space will still be taken from your account.
- We may review your overdraft limit, and the limit may be reduced.
- If you're a Business Banking or Corporate customer and your overdraft renews during your debt respite breathing space, we may take the arranged overdraft annual fee. We'll refund this to your account by the time your debt respite breathing space ends.
Santander credit card (including Business Credit Card).
- From the date debt respite breathing space starts, we'll stop charging you interest and default fees on your credit card. We'll also stop charging you any account fees you'd normally pay.
- We’ll temporarily block your credit card so you won't be able to use it.
- You still need to make your monthly minimum payment, you can find this on your statement. If you have an existing Direct Debit, it won't be cancelled.
- Fees which you incurred before the start of your debt respite breathing space will still be added to your account balance.
- We may review your credit limit, and the limit may be reduced.
Santander loan (including unsecured personal loans, unsecured business loans, Bounce Back Loans, Corporate Bounce Bank Loans, corporate loans).
- From the date debt respite breathing space starts, you may see interest applied to your account. We’ll refund any interest paid once debt respite breathing space ends. This refund will be used to reduce the outstanding balance on your loan.
- You need to make your monthly loan payments. If you have an existing Direct Debit, it won't be cancelled.
- Interest incurred before the start of your debt respite breathing space will still be added to your loan.
- If you're a Business Banking customer with a Bounce Back Loan, and you've chosen the Pay As You Grow - Interest Only repayment option, we will refund any interest paid once debt respite breathing space ends.
Santander mortgage (including commercial and corporate mortgages)
- From the date debt respite breathing space starts, we'll stop charging interest on the arrears on your mortgage.
- You still need to make your monthly mortgage payments. If you have an existing Direct Debit, it won't be cancelled.
- You may be charged legal costs incurred before the start of debt respite breathing space.
Alliance & Leicester mortgage (including commercial mortgages and corporate mortgages).
- From the date we confirm your debt respite breathing space has started, you may still see interest applied to your account. Any interest paid during your debt respite breathing space will be refunded once your debt respite breathing space ends. This refund will be used to reduce the outstanding balance on your loan.
- You still need to make your monthly mortgage payments. If you have an existing Direct Debit, it won't be cancelled.
- We'll stop any charges related to the arrears amount. You may be charged legal costs incurred before the start of debt respite breathing space.
We won't contact you to request any payments while you're in debt respite breathing space. You'll still get communications we're required to send, like your statement. We're sorry if you do get any communications, we aren't always able to stop some being sent.
Coming to the end of debt respite breathing space
We'll write to you when your debt respite breathing space ends. This letter will contain important information you need to know at the time. Your provider should be able to answer any other questions.