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CORONAVIRUS CUSTOMER ASSISTANCE
FREQUENTLY ASKED QUESTIONS

During the Coronavirus (Covid-19) pandemic, our primary aim is to keep our customers and colleagues safe. With this in mind, we will be using alternative means of contact so please don’t be concerned if we contact you via email or text messages in relation to your mortgage with us. Your peace of mind is our top priority. Please be assured that we will only use the email address or telephone number which you have supplied to us. 

Should you have any concerns, then please do not hesitate to contact us on 0344 892 0155

As the impact of COVID-19 continues to be felt across the UK and with regionalised lock-down and social distancing measures continuing, we understand that this is an incredibly challenging time for everyone and we want to reassure you that we are working hard to provide our customers with the information you require as quickly as possible.  

We have put together the following Frequently Asked Questions which we recommend you read through in detail before requesting a Covid-19 Mortgage Payment Holiday, or an extension to your existing payment holiday.  You will find details of how to apply for a Payment Holiday within the Frequently Asked Questions.

  • If you are a Residential customer, you can apply via an online webform or contact us on 0344 892 0155.
  • If you are Buy to Let customer, you can apply by contacting us on 0344 892 0155.

If you are concerned about your mortgage with us, please do contact our Mortgage Services team on 0344 892 0155 so that we can talk through any issues you have and the options available to you. If you have received advice from your mortgage intermediary that a payment holiday is the best solution for you, you can request one here and we will be in touch shortly.

 

If you are a Residential customer, you can apply via an online webform or contact us on 0344 892 0155.

 

What is a Payment Holiday?

As a result of the COVID-19 situation, Vida Homeloans will allow you to have a break from your monthly mortgage payment for up to three months.

The payment holiday means that your payment is deferred to a later date. It is important to remember that you will still owe the outstanding balance and that interest will continue to accrue whilst the deferred payments remain unpaid. This means the total amount of interest you pay over the term of your mortgage will increase.

Is a payment holiday right for me?

Before taking on a payment holiday, you should consider the financial impact of delaying or reducing your current mortgage payments. During your payment holiday period, you will still be charged interest and therefore you will increase your loan balance whilst these payments are suspended, which will result in an increase in monthly payments for the remainder of your mortgage term. You should also consider how you will be able to make up for the missed payments at the end of any payment holiday period.

What if my account is currently in arrears, can I still apply for a payment holiday?

If you have existing financial difficulties, or your mortgage is currently in arrears, we can still consider offering you a payment holiday, however, we will need to talk with you about this and the many other ways we can help you. Please read our >Support with Financial Difficulties guide and give our dedicated support a team a call on 0344 892 0155 so we can discuss how we can assist you.

When will the payment holiday take effect?

Where we can, we’ll start your payment holiday from your next monthly payment. However, if your next payment is due in the next 7 working days, your payment holiday may start the following month. We’ll confirm the details when we write to you or text you confirming that your payment holiday has been set up.

I can pay something just not the full payment. Is it better to pay what I can?

Yes. It is important to continue to pay as much as you can afford as any deferment will cost you more over time, therefore considering how your income has been impacted by Covid-19 and your household expenses, if you can afford to make any payment then you should do so. To make a partial payment you will need, for example, to set up a standing order or make a card payment by calling our Mortgage Services team on 0344 892 0155 or by using our online portal.

If I take a payment holiday, will my credit record be affected?

No. An agreed payment holiday will not affect your credit file. However, please remember that Lenders may use other sources of information in their future lending decisions.

If I’m impacted as a result of the COVID-19 situation and unable to meet my mortgage payments, how do I apply for a payment holiday?

If you experience payment difficulties due to the COVID-19 situation and wish to request a payment holiday, please complete the online request form and we will be in touch to confirm acceptance of your request. Alternatively, you can call our Mortgage Services team on 0344 892 0155. As you can appreciate, we are currently experiencing unprecedented levels of calls in relation to mortgage payment holidays and so we are doing everything we can to answer every query.

How will this affect my mortgage payment and outstanding balance at the end of the holiday period?

A payment holiday is a temporary break from your mortgage payments. Interest will continue to be charged during the payment holiday, when your payments start up again, your balance will therefore be higher than if you’d continued to pay off your mortgage.  We’ll recalculate your monthly payments, based on your new balance, and so you will see them increase. We’ll be in touch before your payment holiday ends to tell you what your new monthly payment amount will be and the date when payments will begin again. If you’re worried about paying the new amount, contact our Mortgage Services team on 0344 892 0155. They will be able to talk through some options, such as extending your mortgage term to ensure your payment is affordable. 

Illustrative 3-month example

Capital Repaymant Interest only
Balance at start of payment holiday£200,000£200,000£200,000
Interest rate4.10%4.10%4.10%
Term remaining at start of payment holiday10 years10 years25 years
Current monthly payment£2035£1067£683
Additional monthy amount - accrued interest split over remaining mortgage term£11£6£7
Average monthly amount - deferred interest accrued split over remaining mortgage term£51£11
Total monthly impact£62£17£7
New monthly payment post holiday payment *£2097£1084£690
Amount repayable without payment holiday£244,169£320,058£407,101
Amount repayable with payment holiday£245,495£321,963£409,101
Total additional interest accrued£1326£1905£2080
Total of deferred payments£6104£3201

* We will write to you before the end of your payment holiday to confirm what your new monthly payment will be and start date of this new payment.

* The above information is for illustrative purposes only if you would like to see an example for your own mortgage a calculator can be found at Moneyadviceservice.org.uk

If I don’t want my monthly mortgage payments to increase at the end of the payment holiday, what other options are available?

In the letter confirming your payment holiday, we also referenced that there are other options to repay the deferred sums. Some of these options may cost you less over the term of your mortgage, as outlined below.
1. Make a full payment to clear the deferred payments.
2. Make a partial payment towards the deferred payments with the remainder paid back over the term of your mortgage.
3. Arrange to make overpayments to clear the deferred payments over a shorter period agreed with us.
4. A combination of 2 & 3 is also possible.
For example, you may wish to pay the lump sum off which covered the deferred payments and interest. Once paid, this would mean that your monthly Direct Debit would continue at the same amount you were paying before the payment holiday commenced.  If you would like to make a lump sum payment or discuss calculations based on any of these options, or any other options which may be available, please contact our Mortgage Services team on 0344 892 0155.

Should I cancel my regular mortgage payment (e.g. Direct Debit or Standing Order) during the payment holiday?

No. We will automatically adjust your Direct Debit for the duration of the agreed payment holiday, we will write to you to confirm when this will restart and the amounts due. If you pay by Standing Order, you will need to arrange with your Bank to amend the next payment date to reflect the duration of your agreed payment holiday, again, we will confirm this to you once your payment holiday request has been accepted.

If I take a Covid-19 related payment holiday, can I take another payment holiday in the future?

Vida Homeloans has only temporarily allowed payment holidays as a result of the current COVID-19 situation. Vida Homeloans does not normally allow payment holidays.

Are there any schemes which are excluded for example Help to Buy?

No. All customers are able to apply for a payment holiday if directly affected by COVID-19.

 

 

If I have already taken a Payment Holiday can I apply for an extension on my current payment holiday?

If you have already taken a payment holiday and are still unable to afford your monthly payment in full due to the impact of COVID-19, you can apply for a payment holiday extension by completing the online request form.

In order to help understand your position and to assess whether a further payment holiday is the best option for you, we will ask how you are being impacted and take the following information into consideration:

- Are you experiencing a reduction in your income due to Self-isolation or Covid-19 Symptoms
- Are you experiencing a reduction in your income due to being placed on furlough
- Are you working reduced hours due to Covid-19 however not furloughed
- Are you Self-employed and therefore your business has been impacted by Covid-19
- Are you a Small Business Company Director and your Business has been impacted to Covid-19
- Has your employment been impacted by Covid-19
- Have your childcare arrangements been impacted by Covid-19

We may ask for further information relating to your personal circumstances in order to make a fully informed decision. The final outcome will be confirmed to you in writing.

If you are unsure whether a payment holiday is right for you, please call our Mortgage Services team on 0344 892 0155

Is a payment holiday extension right for me?

Before requesting an extension to your payment holiday, you should consider the financial impact of deferring or reducing your current mortgage payments.

If you have found that your finances have not been impacted as much as you thought, and you are still able to make all, or some of your mortgage payments then you should continue to do so.

It is important to continue to pay as much as you can afford as any deferment will cost you more over time. Therefore, when considering how your income has been impacted by Covid-19 and taking into account your household expenses, if you can afford to make any payment then you should do so. You will still be charged interest and therefore increase your loan balance whilst these payments are suspended. You will also see an increase in your monthly payment for the full remainder of your mortgage term.

If you are not sure how much the ongoing situation will impact your finances, or if you think you may be able to start repaying your mortgage, either in full or in part, there is still time to consider the best option for you. We are committed to supporting all of our customers who have been impacted by this crisis and we are here to help.

The longer you defer your payments, the greater the payment increase will be, therefore you should also fully consider how you will meet the higher payments once any payment holiday has ended.

I can pay something just not the full payment. Is it better to pay what I can?

Yes. It is important to continue to pay as much as you can afford as any deferment will cost you more over time, therefore considering how your income has been impacted by Covid-19 and your household expenses, if you can afford to make any payment then you should do so.

To make a partial payment you will need, for example, to set up a standing order or make a card payment by calling our Mortgage Services team on 0344 892 0155 or by our online portal.

How will this affect my mortgage payment and outstanding balance at the end of the holiday period?

A payment holiday is a temporary break from your mortgage payments.

Interest will continue to be charged during the payment holiday, when your payments start up again, your balance will therefore be higher than if you’d continued to pay off your mortgage.

We’ll recalculate your monthly payments, based on your new balance, and so you will see them increase.

We’ll be in touch before your payment holiday ends to tell you what your new monthly payment amount will be and the date when payments will begin again. If you’re worried about paying the new amount, contact our Mortgage Services team on 0344 8920155. They will be able to talk through some options, such as extending your mortgage term to ensure your payment is affordable. 

Illustrative 3-month example

Capital Repaymant Interest only
Balance at start of payment holiday£200,000£200,000£200,000
Interest rate4.10%4.10%4.10%
Term remaining at start of payment holiday10 years10 years25 years
Current monthly payment£2035£1067£683
Additional monthy amount - accrued interest split over remaining mortgage term£11£6£7
Average monthly amount - deferred interest accrued split over remaining mortgage term£51£11
Total monthly impact£62£17£7
New monthly payment post holiday payment *£2097£1084£690
Amount repayable without payment holiday£244,169£320,058£407,101
Amount repayable with payment holiday£245,495£321,963£409,101
Total additional interest accrued£1326£1905£2080
Total of deferred payments£6104£3201
*

* We will write to you before the end of your payment holiday to confirm what your new monthly payment will be and start date of this new payment.

* The above information is for illustrative purposes only if you would like to see an example for your own mortgage a calculator can be found at Moneyadviceservice.org.uk

If I don’t want my monthly mortgage payments to increase at the end of the payment holiday, what other options are available?

In the letter confirming your payment holiday, we also referenced that there are other options to repay the deferred sums.

Some of these options may cost you less over the term of your mortgage, as outlined below.

1. Make a full payment to clear the deferred payments.
  2. Make a partial payment towards the deferred payments with the remainder paid back over the term of your mortgage.
3. Arrange to make overpayments to clear the deferred payments over a shorter period agreed with us.
4. A combination of 2 & 3 is also possible.

For example, you may wish to pay the lump sum off which covered the deferred payments and interest. Once paid, this would mean that your monthly Direct Debit would continue at the same amount you were paying before the payment holiday commenced.

If you would like to make a lump sum payment or discuss calculations based on any of these options, or any other options which may be available, please contact our Mortgage Services team on 0344 892 0155.

Should I cancel my regular mortgage payment (e.g. Direct Debit or Standing Order) during the payment holiday?

No. We will automatically adjust your Direct Debit for the duration of the agreed payment holiday, we will write to you to confirm when this will restart and the amounts due.

If you pay by Standing Order, you will need to arrange with your Bank to amend the next payment date to reflect the duration of your agreed payment holiday, again, we will confirm this to you once your payment holiday request has been accepted.

If I take a Covid-19 related payment holiday, can I take another payment holiday in the future?

Vida Homeloans has only temporarily allowed payment holidays as a result of the current COVID-19 situation. Vida Homeloans does not normally allow payment holidays.

Are there any schemes which are excluded for example Help to Buy?

No. All customers are able to apply for a payment holiday if directly affected by COVID-19.

How do I apply for a payment holiday extension?

Please call our Mortgage Services team on 0344 892 0155. As you can appreciate, we are currently experiencing unprecedented levels of calls in relation to mortgage payment holidays and so we are doing everything we can to answer every query.

If you are Buy to Let customer, you can apply by contacting us on 0344 892 0155.

 

What is a Payment Holiday?

As a result of the COVID-19 situation, Vida Homeloans will allow you to have a break from your monthly mortgage payment for up to three months.

The payment holiday means that your payment is deferred to a later date. It is important to remember that you will still owe the outstanding balance and that interest will continue to accrue whilst the deferred payments remain unpaid. This means the total amount of interest you pay over the term of your mortgage will increase.

If you are an existing BTL customer, please be aware that the Payment Holiday scheme is primarily designed to provide support in instances where tenants are struggling to pay their rent and, as a result of this, you experience a loss or reduction in rental income used to pay your BTL mortgage which you cannot make up from your own financial resources.

It is therefore expected that any support we may grant you through the approval of a Payment Holiday will be passed on by you providing rent relief to your tenant. Please be aware we may request additional information to support your Payment Holiday request e.g. evidence that your tenant cannot afford to pay their rent and/or you do not have sufficient financial resources to cover your monthly mortgage payment. We may also ask you to provide evidence of the support you are providing your tenant during the term of the Payment Holiday.

Is a payment holiday right for me?

Before taking on a payment holiday, you should consider the financial impact of delaying or reducing your current mortgage payments. It is expected that any support we may grant you through the approval of a Payment Holiday will be passed on by you providing rent relief to your tenant – we may ask you for proof of this.

During your payment holiday period, you will still be charged interest and therefore you will increase your loan balance whilst these payments are suspended, which will result in an increase in monthly payments for the remainder of your mortgage term.

You should also consider how you will be able to make up for the missed payments at the end of any payment holiday period.

What if my account is currently in arrears, can I still apply for a payment holiday?

If you have existing financial difficulties, or your mortgage is currently in arrears, we can still consider offering you a payment holiday, however, we will need to talk with you about this and the many other ways we can help you.

Please read our “Support with Financial Difficulties” guide and give our dedicated support a team a call on 0344 892 0155 so we can discuss how we can assist you

When will the payment holiday take effect?

Where we can, we’ll start your payment holiday from your next monthly payment. However, if your next payment is due in the next 7 working days, your payment holiday may start the following month. We’ll confirm the details when we write to you or text you confirming that your payment holiday has been set up.

I can pay something just not the full payment. Is it better to pay what I can?

Yes. It is important to continue to pay as much as you can afford as any deferment will cost you more over time, therefore considering how your income has been impacted by Covid-19 and your household expenses, if you can afford to make any payment then you should do so. To make a partial payment you will need, for example, to set up a standing order or make a card payment by calling our Mortgage Services team on 0344 892 0155.

If I take a payment holiday, will my credit record be affected?

No. An agreed payment holiday will not affect your credit file. However, please remember that Lenders may use other sources of information in their future lending decisions.

If I’m impacted as a result of the COVID-19 situation and unable to meet my mortgage payments, how do I apply for a payment holiday?

If you experience payment difficulties due to the COVID-19 situation and wish to request a payment holiday, please contact us by calling our Mortgage Services Team on 0344 892 0155. As you can appreciate, we are currently experiencing unprecedented levels of calls in relation to mortgage payment holidays and so we are doing everything we can to answer every query.

How will this affect my mortgage payment and outstanding balance at the end of the holiday period?

A payment holiday is a temporary break from your mortgage payments. Interest will continue to be charged during the payment holiday, when your payments start up again, your balance will therefore be higher than if you’d continued to pay off your mortgage.  We’ll recalculate your monthly payments, based on your new balance, and so you will see them increase. We’ll be in touch before your payment holiday ends to tell you what your new monthly payment amount will be and the date when payments will begin again. If you’re worried about paying the new amount, contact our Mortgage Services team on 0344 892 0155. They will be able to talk through some options, such as extending your mortgage term to ensure your payment is affordable. 

Illustrative 3-month example

Capital Repaymant Interest only
Balance at start of payment holiday£200,000£200,000£200,000
Interest rate4.10%4.10%4.10%
Term remaining at start of payment holiday10 years10 years25 years
Current monthly payment£2035£1067£683
Additional monthy amount - accrued interest split over remaining mortgage term£11£6£7
Average monthly amount - deferred interest accrued split over remaining mortgage term£51£11
Total monthly impact£62£17£7
New monthly payment post holiday payment *£2097£1084£690
Amount repayable without payment holiday£244,169£320,058£407,101
Amount repayable with payment holiday£245,495£321,963£409,101
Total additional interest accrued£1326£1905£2080
Total of deferred payments£6104£3201

If I don’t want my monthly mortgage payments to increase at the end of the payment holiday, what other options are available?

In the letter confirming your payment holiday, we also referenced that there are other options to repay the deferred sums.

Some of these options may cost you less over the term of your mortgage, as outlined below.
1. Make a full payment to clear the deferred payments.
2. Make a partial payment towards the deferred payments with the remainder paid back over the term of your mortgage.
3. Arrange to make overpayments to clear the deferred payments over a shorter period agreed with us.
4. A combination of 2 & 3 is also possible.

For example, you may wish to pay the lump sum off which covered the deferred payments and interest. Once paid, this would mean that your monthly Direct Debit would continue at the same amount you were paying before the payment holiday commenced. 

If you would like to make a lump sum payment or discuss calculations based on any of these options, or any other options which may be available, please contact our Mortgage Services team on 0344 892 0155.

Should I cancel my regular mortgage payment (e.g. Direct Debit or Standing Order) during the payment holiday?

No. We will automatically adjust your Direct Debit for the duration of the agreed payment holiday, we will write to you to confirm when this will restart and the amounts due.

If you pay by Standing Order, you will need to arrange with your Bank to amend the next payment date to reflect the duration of your agreed payment holiday, again, we will confirm this to you once your payment holiday request has been accepted.

If I take a Covid-19 related payment holiday, can I take another payment holiday in the future?

Vida Homeloans has only temporarily allowed payment holidays as a result of the current COVID-19 situation. Vida Homeloans does not normally allow payment holidays.

No. All customers are able to apply for a payment holiday if directly affected by COVID-19.

 

 

If I have already taken a Payment Holiday can I apply for an extension on my current payment holiday?

If you have already taken a payment holiday and are still unable to afford your monthly payment in full due to the impact of COVID-19, you can apply for a payment holiday extension.

In order to help understand your position and to assess whether a further payment holiday is the best option for you, we will ask how you are being impacted and take the following information into consideration:
- Information of the impact of COVID-19 on your existing tenants and any adjustments in place
- Details of how your tenants will benefit from your mortgage payment holiday
- Are you experiencing a reduction in your income due to Self-isolation or Covid-19 Symptoms
- Are you experiencing a reduction in your income due to being placed on furlough
- Are you working reduced hours due to Covid-19 however not furloughed
- Are you Self-employed and therefore your business has been impacted by Covid-19
- Are you a Small Business Company Director and your Business has been impacted to Covid-19
- Has your employment been impacted by Covid-19
- Have your childcare arrangements been impacted by Covid-19

We may ask for further information relating to your personal circumstances in order to make a fully informed decision. The final outcome will be confirmed to you in writing.

If you are unsure whether a payment holiday is right for you or would like to apply for an extension please call our Mortgage Services team on 0344 892 0155.

Is a payment holiday extension right for me?

Before requesting an extension to your payment holiday, you should consider the financial impact of deferring or reducing your current mortgage payments.

If you have found that your finances have not been impacted as much as you thought, and you are still able to make all, or some of your mortgage payments then you should continue to do so.

It is important to continue to pay as much as you can afford as any deferment will cost you more over time. Therefore, when considering how your income has been impacted by Covid-19 and taking into account your household expenses, if you can afford to make any payment then you should do so. You will still be charged interest and therefore increase your loan balance whilst these payments are suspended. You will also see an increase in your monthly payment for the full remainder of your mortgage term.

If you are not sure how much the ongoing situation will impact your finances, or if you think you may be able to start repaying your mortgage, either in full or in part, there is still time to consider the best option for you. We are committed to supporting all of our customers who have been impacted by this crisis and we are here to help.

The longer you defer your payments, the greater the payment increase will be, therefore you should also fully consider how you will meet the higher payments once any payment holiday has ended.

I can pay something just not the full payment. Is it better to pay what I can?

Yes. It is important to continue to pay as much as you can afford as any deferment will cost you more over time, therefore considering how your income has been impacted by Covid-19 and your household expenses, if you can afford to make any payment then you should do so.

To make a partial payment you will need, for example, to set up a standing order or make a card payment by calling our Mortgage Services team on 0344 892 0155.

How will this affect my mortgage payment and outstanding balance at the end of the holiday period?

A payment holiday is a temporary break from your mortgage payments.

Interest will continue to be charged during the payment holiday, when your payments start up again, your balance will therefore be higher than if you’d continued to pay off your mortgage.

We’ll recalculate your monthly payments, based on your new balance, and so you will see them increase.

We’ll be in touch before your payment holiday ends to tell you what your new monthly payment amount will be and the date when payments will begin again. If you’re worried about paying the new amount, contact our Mortgage Services team on 0344 8920155. They will be able to talk through some options, such as extending your mortgage term to ensure your payment is affordable. 

Illustrative 3-month example

Capital Repaymant Interest only
Balance at start of payment holiday£200,000£200,000£200,000
Interest rate4.10%4.10%4.10%
Term remaining at start of payment holiday10 years10 years25 years
Current monthly payment£2035£1067£683
Additional monthy amount - accrued interest split over remaining mortgage term£11£6£7
Average monthly amount - deferred interest accrued split over remaining mortgage term£51£11
Total monthly impact£62£17£7
New monthly payment post holiday payment *£2097£1084£690
Amount repayable without payment holiday£244,169£320,058£407,101
Amount repayable with payment holiday£245,495£321,963£409,101
Total additional interest accrued£1326£1905£2080
Total of deferred payments£6104£3201
*

* We will write to you before the end of your payment holiday to confirm what your new monthly payment will be and start date of this new payment.

* The above information is for illustrative purposes only if you would like to see an example for your own mortgage a calculator can be found at Moneyadviceservice.org.uk

If I don’t want my monthly mortgage payments to increase at the end of the payment holiday, what other options are available?

In the letter confirming your payment holiday, we also referenced that there are other options to repay the deferred sums.

Some of these options may cost you less over the term of your mortgage, as outlined below.
1. Make a full payment to clear the deferred payments.
2. Make a partial payment towards the deferred payments with the remainder paid back over the term of your mortgage.
3. Arrange to make overpayments to clear the deferred payments over a shorter period agreed with us.
4. A combination of 2 & 3 is also possible.

For example, you may wish to pay the lump sum off which covered the deferred payments and interest. Once paid, this would mean that your monthly Direct Debit would continue at the same amount you were paying before the payment holiday commenced. 

If you would like to make a lump sum payment or discuss calculations based on any of these options, or any other options which may be available, please contact our Mortgage Services team on 0344 892 0155.

Should I cancel my regular mortgage payment (e.g. Direct Debit or Standing Order) during the payment holiday?

No. We will automatically adjust your Direct Debit for the duration of the agreed payment holiday, we will write to you to confirm when this will restart and the amounts due.

If you pay by Standing Order, you will need to arrange with your Bank to amend the next payment date to reflect the duration of your agreed payment holiday, again, we will confirm this to you once your payment holiday request has been accepted.

If I take a Covid-19 related payment holiday, can I take another payment holiday in the future?

Vida Homeloans has only temporarily allowed payment holidays as a result of the current COVID-19 situation. Vida Homeloans does not normally allow payment holidays.

How do I apply for a payment holiday extension?

Please call our Mortgage Services team on 0344 892 0155. As you can appreciate, we are currently experiencing unprecedented levels of calls in relation to mortgage payment holidays and so we are doing everything we can to answer every query.