Concerned about your mortgage payments?

How we can help

Payment deferral
For those whose finances have been, or feel they might be, affected by coronavirus you have the option to take a payment deferral under current Financial Conduct Authority (FCA) guidance.
 
You can apply to take a full deferral from your payments, or make reduced payments.
 
A payment deferral period of at least 3 months is available for clients who have not previously had one, or previously had a deferral of up to 3 months only, but then returned to their normal payments. You are able to apply for this support up to and including 31st March 2021.
 
If, after your deferral, you consider you need longer, a further payment deferral of up to 3 months may be available. The FCA has confirmed that a payment deferral cannot go beyond 31st July 2021. Therefore, if you want to benefit from the maximum deferral available of 6 months, you will need to have commenced your first 3 month deferral period prior to your February 2021 payment falling due.
 
It is important to understand interest will continue to accrue during the payment deferral at your mortgage’s applicable interest rate. This means that, unless at the end of the deferral you take the option to pay the amount of deferred payments in full, you will pay more interest over the term of your mortgage, as a result your regular mortgage payments will increase. Therefore, if you are able to continue to make your payments, without a payment deferral, then you should do so.
 
We will contact you regarding your full options at the end of your payment deferral.
 
Taking a payment deferral under the FCA guidance will not affect your credit rating. However, please note lenders may take into account other information when making future lending decisions, including for example, information provided by applicants or bank account information.
 
Any payment deferrals requested under the FCA guidance are not subject to underwriting approval.
 
Please contact your private banker in the first instance, or call us on 0207 5974988 and we will contact your private banker to arrange a call back.
Tailored support
If you have already had 6 months of payment deferrals under the FCA guidance, or are outside the stated time-frames, you can’t apply for additional deferrals under this guidance. Likewise, if your payment issues are unrelated to coronavirus.
 
However, there are a number of things that we may be able to do to help. Your options will depend on a variety of factors, including how much you can afford to pay, your individual circumstances and whether your financial difficulties are likely to be short, medium or long term. These could include:
  • Extending the term of your mortgage – For a capital repayment mortgage this would mean reducing the amount you pay each month but over a longer period of time. For an interest-only mortgage you would still pay the same amount but would have longer to accumulate the capital to repay the lump sum you will owe at the end of the term.
  • Changing the type of your mortgage – If you have a capital repayment mortgage we can consider switching you to interest-only, either for a short, medium or long term period. Any decision will involve us assessing whether you will be able to meet increased payments at a later date or repay any capital that is outstanding.
  • Agreeing a temporary payment plan – We can consider temporary solutions such as reducing your payments for a period. This may be appropriate for clients who are unable to work because you are in a local lockdown.
  • Deferring payments due – We can look at putting a payment deferral in place for you, although interest will continue to accrue during this period, which is likely to lead to higher payments when the deferral period is over.
  • Lowering the interest rate – We can consider reducing the interest rate applicable to your account to give you more available money, for example if you are unable to work for a period because of coronavirus restrictions.
 
This list is not exhaustive and Investec will consider other options in appropriate circumstances. Any options are subject to underwriting approval (unlike payment deferrals under the FCA guidance).
Consequences of an arrangement
  • Whilst an arrangement may reduce your regular payments now, it will increase the overall cost of your mortgage and you will pay more interest as a result.
  • Depending on your arrangement it is likely that your regular payments will increase when an arrangement ends.
  • Any arrangement will be reported as such to the Credit Reference Agencies and this is likely to negatively impact future applications to borrow money.
Consequences of missing mortgage payments
  • Continuing to miss mortgage payments means we may commence legal proceedings, as a last resort we may repossess and then sell your home.
  • If the proceeds from a repossession do not cover your mortgage debt you will be liable for any shortfall.
  • If you have a joint mortgage or a guarantor they will be liable for the money you owe.
  • Any missed payments will be reported as such to the Credit Reference Agencies and this is likely to negatively impact future applications to borrow money.
Other places you can go for help and information about borrowing and debt
Some organisations provide free and impartial advice about borrowing and debt:
If you’re self-employed, Business Debtline (https://www.businessdebtline.org/) has useful information and advice for businesses.

You can also find on their websites information about the range of ways you can get in touch with someone there to discuss your finances. You might be able to get face-to-face or telephone-based advice. However, please bear in mind that availability and waiting times might be affected by the pandemic.
 
Our regulator, the Financial Conduct Authority, and the independent Money Advice Service also have some information to help you decide on the options above:
We also recommend you consider contacting any other creditors you have to discuss your repayments with them.
 
Please contact your private banker in the first instance, or call us on 0207 5974988 and we will contact your private banker to arrange a call back.
 
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE