Santander and cahoot loan customers
We understand that some of our customers may be worried about making their personal loan payments at the moment. If you are one of them, you could apply to have a personal loan payment holiday of up to 3 months to help you in these uncertain times. See below for more information including how to apply for a payment holiday.
Taking a personal loan holiday means you won’t need to make a payment to your loan for up to 3 months. You will still be charged interest on your outstanding loan balance during the holiday.
You can choose 1, 2 or 3 months when you apply. Your loan term will be increased by the length of the payment holiday. In addition, your loan term may be extended to enable you to repay the additional interest charged during your payment holiday.
We will email you to confirm when your payment holiday will start once we have processed your application. Please don’t cancel your Direct Debit.
When you’ve submitted the form we’ll take care of everything so there’s no need to call us. We’ll contact you to let you know if we’ve approved your request for a payment holiday and what this means for you. Before the end of your payment holiday we’ll contact you again to confirm the date your loan and monthly payments will be restarted.
No. During the payment holiday the Direct Debit won’t be taken, we’ll take care of this.
If your loan is in arrears, which means that you’re behind on your payments at the moment, you can still apply for a payment holiday using the online form. If you need to contact us, call us on 0800 011 3142. We’re helping a lot of customers currently and we’re sorry that our wait time is significantly higher than usual.
No. During your payment holiday you may receive a statutory notice called a Notice Of Sums In Arrears (‘NOSIA’). This may relate to arrears that you incurred either before, or payments missed during, your payment holiday. We are required by law to send you this notice and you do not need to take any action.
Yes, you can apply for a payment holiday for all of your Santander (or cahoot) personal loans, but you need to submit a separate online form for each loan.
No, we’ll make sure this doesn’t happen. If you are already in arrears on your loan, your credit file will not be impacted further as a result of taking a payment holiday.
Yes, you can make a payment at any time and it won’t impact your payment holiday.
No. For loans in joint names only one of you needs to apply, but please make sure you have the consent of the other customer.
We will confirm the amount of additional interest you will need to pay once your payment holiday has been set up.
You will need to consider all information before deciding to take a payment holiday. The term of your loan will be extended by the length of payment holiday that you select i.e. 1, 2 or 3 months. You will be charged interest on your outstanding loan balance during the payment holiday period. You can repay the amount of interest at the end of the payment holiday, or if you are unable to do this, your loan term will be extended further to allow for the repayment of interest. Alternatively, you can make overpayments at any time before your final repayment is due.
If you have taken a payment holiday, no Direct Debit payments will be taken during the agreed period. You can ignore the payment details relating to your loan within online banking during your payment holiday.
The below table shows how a payment holiday of 3 months might change the cost of a loan based on a range of APRs. Interest will continue to be charged at your contracted APR for the period of your requested payment holiday and will be added to your account. Your contracted APR can be found in your loan agreement.
|Example A||Example B||Example C|
|Current loan amount|
|Monthly payments left||36||36||48|
|Estimated additional interest for a 3-month payment holiday||£37||£88||£260|
|Estimated additional total interest to be paid over the remaining period of the loan||£41||£109||£655|
|Extra monthly payments needed (to cover payment holiday and total interest charged)||4||4||6|
- These are illustrative examples only, based on a sample of APRs.
- Examples show a 3 month term extension to cover the payment holiday, plus up to 3 additional payments to repay the interest.
- They assume that monthly payments continue as normal after a repayment holiday.
Once your loan term has come to an end and you have made all of your contractual monthly payments, we will take additional monthly Direct Debit payments to claim the additional interest. Alternatively, you could make a lump sum payment at the end of the payment holiday to clear what is owed, or you could contact us about refinancing your existing loan (the minimum required refinance balance is £1,000).
Yes. If your circumstances change and you wish to make a payment to cover the interest, you can do this at any time via online or mobile banking, by calling us on 0800 876 6386 or by visiting us in branch.
We'll contact you by email or text around 20 days before your payment holiday is due to end. When it’s ended, your monthly Direct Debt payments will restart.
You can take a payment holiday of 3 months in total, so if your first payment holiday was for less, you will be able to extend. For example, if you initially took a payment holiday of 2 months, you can request 1 more month. If you were to submit a new request for more than 1 month, we’d still only extend your holiday by 1 month.
You’ll need to complete the online payment holiday form again within 5 days of receiving your email or text to make sure there’s no interruption in the payment holiday. Remember that interest will continue to be added to your balance.
The quickest way to apply is using the online form (click ‘Apply’ at the top of this page). You’ll need an email address.
We’ll only use the email address to keep you updated about your payment holiday. If you don’t have an email address, you can call us on 0800 876 6386 but we’re taking a lot of calls at the moment so it will take longer than usual to respond.
It will restart and your monthly payments will resume once the payment holiday has ended.
If you’ve cancelled your Direct Debit, you’ll need to call us on 0800 876 6386 to re-activate it.
If you still feel unable to make your loan payments, please call us on 0800 011 3142 so we can help you. We’re working hard to look after all our customers, so we’re sorry if it takes longer than normal to reach us over the phone.
Yes. You can make a payment to cover the interest any time:
- Use Online or Mobile Banking
- Call us on 0800 876 6386 or
- Visit a branch.
This will mean that you will pay less interest over the remaining term of your loan, and the amount that you owe us will decrease.