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.

What is a personal loan 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.

How long can I take the payment holiday for?

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.

When will the payment holiday start?

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.

What happens after I apply?

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.

Do I need to cancel my Direct Debit?

No. During the payment holiday the Direct Debit won’t be taken, we’ll take care of this.

I’m already in arrears on my personal loan can I get any help?

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.

Will I fall into arrears on my loan by taking a payment holiday?

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.

I have more than one personal loan with Santander, does the payment holiday apply to all of them?

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. 

Will it impact my credit file if I take a payment holiday

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

Can I make a payment during the three months payment holiday if my circumstances change?

Yes, you can make a payment at any time and it won’t impact your payment holiday.

My loan is in joint names, do we both need to request a 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.

How much interest will I be charged during my payment holiday?

We will confirm the amount of additional interest you will need to pay once your payment holiday has been set up.

Is a payment holiday right for me? 

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.

I have taken a payment holiday on my loan but my online banking shows that my monthly payment will still be taken? 

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.

How will taking a payment holiday affect my loan repayments? 

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 AExample BExample C
Current loan amount


Loan APR


Monthly payment£142£151£318
Monthly payments left363648
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)446
  • 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.

How do I repay the interest charged during my 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).

Can I pay the additional interest before the end of my payment holiday?

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.


How will I know my payment holiday is ending?

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.

Can I extend my payment holiday?

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. 

How do I apply for an extension on my payment holiday?

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.

What happens to my Direct Debit?

It will restart and your monthly payments will resume once the payment holiday has ended.

What if I’ve cancelled my Direct Debit?

If you’ve cancelled your Direct Debit, you’ll need to call us on 0800 876 6386 to re-activate it.

I can't afford to make my loan payment now that my payment holiday has ended

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.

Can I make an additional payment to cover the interest that I have been charged during my payment holiday before the end of my loan term?

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.


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