Santander and cahoot loan customers

We understand at the moment that you may be worried about paying your loan. On this page you can apply for a payment holiday and find out what happens if your payment holiday is coming to an end.

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. 

It’s easy to apply using our online form. Please read the FAQs before deciding whether a payment holiday is right for you. To apply, you’ll need:

  • to be up to date on your personal loan payments. If you’re in arrears (which means you’re behind on your payments), and you need support, please visit our money worries page. If you’ve already set up a payment arrangement for the arrears amount and need further help, please call us on 0800 678 3322
  • an email address. If you don’t have one, then read our ‘I don’t have an email address’ FAQ below for more options
  • to complete our online form by 31 March 2021.

If you’ve already had a payment holiday, please don’t use this form. You can find further details about support available within the FAQs below. 

If your circumstances have recently changed and you can no longer afford to make your personal loan payments, we might be able to offer you another payment holiday. You’re not able to apply for another payment holiday if:

  • you’ve already taken a total of 6 months payment holiday in the past or
  • you’re behind on any of your personal loan payments or
  • you’ve got a payment arrangement in place to pay off existing arrears.

If none of the above applies to you, please complete this form to apply for another payment holiday.

If you’ve had a total of 6 months payment holiday in the past, or you’re behind on your payments or have a payment arrangement in place, you’ll need to fill in our budget planner. For details about how to do this, please visit the ‘Budget planning’ section of our money worries page. 

If you’ve already filled in our budget planner in the past, you don’t need to do it again. Please call us on 0800 678 3322 so that we can find a way to help you.

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.

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

£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.

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. 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 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.

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’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’ll need to speak to us. Please visit our money worries page for details about how to do 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 applied for a payment holiday on or before 25 November 2020 and 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 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. 

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 don’t have an email/ don’t want to provide one – is there any other way I can get the payment holiday?

The quickest way to do this is using the online form which requires 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.  We’re experiencing a very high number of calls at the moment so it could take longer than normal to for you to speak to us.

If I don’t want to take a payment holiday, 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.

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What happens at the end of a payment holiday?

What happens at the end of my loan payment holiday?

If you’ve received a communication from us about your payment holiday ending soon, you’ll be able to let us know about your situation. Visit the ‘If your loan payment holiday is ending’ section of our money worries page and follow the steps to find out how we can help you.

You will find a deadline date you need to respond by in the communication from us, to make sure there’s no interruption to the payment holiday if you’re eligible for an extension.

Can I extend my payment holiday?

Once you’ve received the text, email or letter from us and followed the steps we talk about above, you’ll know whether we can extend your payment holiday or not. You’re not able to extend your payment holiday if:

  • you’ve already taken a 6 month payment holiday or
  • you’re in arrears on your personal loan (behind on your payments) or
  • you’ve had a previous payment arrangement suspended whilst on your payment holiday.

Please think carefully before choosing to extend your payment holiday. The below table shows how a payment holiday of 6 months might change the cost of a loan based on a range of APRs and the impact this may have on the loan term. Your contracted APR can be found in your loan agreement. A payment holiday of 6 months is when a 3 month payment holiday was taken initially, then extended by another 3 months. Interest will continue to be charged monthly at your contracted APR for the period of your requested payment holiday and will be added to your account.  

 Example 1Example 2Example 3
Current loan amount

£5,000  

£5,000    

£10,000
Loan APR3.0%  

7.2% 

24.9%
Monthly payment£142£151    £318
Monthly payments left3636  48
Estimated additional interest for a 6 month payment holiday£74 £174 £611
Estimated additional total interest to be paid over the remaining period of the loan£81  £216 £1,572
Extra monthly payments needed (to cover payment holiday and total interest charged)7 8    11
  • These are illustrative examples only, based on a sample of APRs. 
  • Examples show a 6 month term extension to cover the payment holiday, plus up to 5 additional payments to repay the interest.
  • They assume that monthly payments continue as normal after a repayment holiday.

If I’m eligible for a payment holiday extension, when will this start?

You’ll need to get in touch by the date in the email/letter we sent you. If the payment holiday extension request is received after this date, we may request a Direct Debit for your usual payment amount before the extension begins.

 

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. 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. 
 

If I don’t want to take another payment holiday, 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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