Santander and cahoot loan customers

Applications for new payment holidays on personal loans ended on 31 March 2021. The FAQs below give you some important information about what happens if you’re still in a payment holiday and what happens when it ends.

We understand that life isn’t back to normal yet for many. So although we’ve stopped offering payment holidays, if you’re worried about paying your credit card check our money worries page - we’re here to help.

Payment holidays – general information

If you started a payment holiday before 1 April 2021, you’ll have arranged with us not to make payments on your loan for up to 6 months. However, you’ll be charged interest on your outstanding loan balance during the payment holiday and your loan term will increase by the length of the payment holiday. Your loan term will be extended further to allow for the repayment of interest. If you want to, you can repay the amount of interest at the end of the payment holiday. Alternatively, you can make overpayments at any time before your final repayment is due.

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

£5,000

£5,000£10,000
Loan APR

3.0%

7.2%24.9%
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.

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. However, if applying for credit in the future, please be aware lenders will look at other sources as well as your credit file, such as information provided on an application or bank account information.

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

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

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.

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.

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’ve received a Notice Of Sum In Arrears letter. What is this?

During your payment holiday, you may receive a statutory notice called a Notice Of Sum In Arrears (‘NOSIA’). We’re required by law to send this notice but you don’t need to take any action whilst on a payment holiday. At the end of your payment holiday, it’s important you read the email or letter we send to you. 

My loan is currently in arrears, what happens at the end of my payment holiday?

If you were in arrears (behind on your loan payments) when you started your payment holiday, we’ll have cancelled any payment arrangements you had in place then. You do need to pay off the arrears, so you’ll need to get a new payment arrangement in place. We’ll be in touch about this at the end of your payment holiday and – as with any late payments – if you don’t pay or make an arrangement, it will impact your credit file. 

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. 

Can I cancel my payment holiday?

No, you can’t cancel your payment holiday. If, however, your circumstances have changed and you’re now able to start making payments to your loan, you can do so at any time using Online or Mobile Banking. You can also call us on 0800 876 6386. 

When your payment holiday ends, your regular monthly payments will start again. 

What happens at the end of a payment holiday?

What happens at the end of my loan payment holiday?

Before you restart your payments, we’ll send you an email or text message (if you gave us your email address or mobile number) and a letter outlining what you need to do next. If you’re worried about restarting your loan payments, please visit our money worries page for more information about ways in which we or independent organisations may be able to help you.

If you’re okay to start repaying your loan, your payment holiday will end and your Direct Debit will automatically restart. If you cancelled your Direct Debit at any point, you'll need to contact us on 0800 876 6386 to set it up again or you’ll miss your payment. This missed payment will be reported to the credit reference agencies which will have a negative impact on your credit file. 

Can I extend my payment holiday?

As payment holidays come to an end on 31 July 2021, we’re no longer able to offer payment holiday extensions.

If you’re worried about restarting your loan payments, please visit our money worries page for more information about ways in which we or independent organisations may be able to help you. 

 

Six months is the maximum payment holiday you can take. Our money worries page contains details of what you can do next.

I want to start my repayments again at the end of the payment holiday – what do I need to do?

When your payment holiday ends, your Direct Debit will restart automatically. If you’ve cancelled your Direct Debit, you should set this up again by calling us on 0800 876 6386.

What happens to my Direct Debit?

Your Direct Debit will restart automatically. If you’ve cancelled your Direct Debit, you should set it up again before the end of your payment holiday by calling us on 0800 876 6386.

For a payment holiday extension, the Direct Debit will continue to be suspended for the period of the payment holiday.

What if I cancelled my Direct Debit?

You’ll need to set it up again before the end of your payment holiday by calling us on 0800 876 6386.

Will it impact my credit file if I miss these payments?

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. However, if applying for credit in the future, please be aware lenders will look at other sources as well as your credit file, such as information provided on an application or bank account information.

I don’t have an email address/ internet access – what can I do?

You’ll need to call us on 0800 876 6386 to discuss your options.

What happens if I have a payment holiday on more than one loan?

You’ll receive a separate communication for each loan. You’ll need to visit the money worries page to tell us your situation for each loan you set a payment holiday up for. 
 

Now that payment holidays are no longer available, do I have any other options?

There are a number of useful websites you can visit for free impartial advice if you’re worried about your financial situation due to coronavirus or more generally. They give a range of information from practical advice about managing your money to budget planning. 

You could also talk to us about your situation if you’re concerned about missing a payment. We may be able to offer you some much needed breathing space. To talk to us about your personal loan call us on 0800 876 6386 or visit our money worries page.

Independent Advice Services
Money Advice Service                                                

How to prioritise your debts

Financial Conduct Authority Coronavirus support

StepChange

Citizens Advice

What happens if I don’t respond to the communication you send me?

Your payment holiday will automatically end and your Direct Debit will restart. If you cancelled your Direct Debit at any point you'll need to make sure you set it up again or you’ll miss your payment. This missed payment will be reported to the credit agencies which will have a negative impact on your credit file.

If you feel concerned about making a payment please visit our money worries page.

 

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