As the impact of COVID-19 is felt across the UK and lock-down continues, we understand this is an incredibly challenging time for everyone and we want to reassure you that we are working hard to provide our intermediary partners and our customers with the information they need as quickly as possible. We are working closely with UK Finance and our regulatory bodies to ensure we keep up to date with official guidance in order to develop the best possible solution to help your customers during these unprecedented times, which includes allowing all customers to take advantage of a three month deferred payment more commonly known as a ‘payment holiday’ and temporarily waiving any arrears management fees during this period.

As challengers to the big traditional players in the UK mortgage market, non-bank lenders like Vida cannot currently access the liquidity facilities announced by HM Treasury and the Bank of England, but we continue to work closely with trade associations such as IMLA and UK Finance to lobby for a change in this situation. This is an industry wide challenge, not one that we face alone and so as a result we have had to temporarily withdraw all new business products to ensure we protect the long term future of the business, preserve jobs and support our existing customers.

Please do contact your customers to see where you can help, a simple phone call can go a long way to provide comfort and support to show they are not alone, as a payment holiday is not always the most suitable option for all. They can call us on 0344 892 0155 to discuss in more detail or, if after your recommendation you and your customer find that a payment holiday is the most suitable option for your customer, they can complete a payment holiday request form here 

We have also put together the following Frequently asked questions which may contain the information you are looking for

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

No all schemes are currently available for a payment holiday if borrowers are directly affected by COVID-19, providing mortgage payments are currently up to date.

How long can payment holidays last for?

Vida Homeloans is currently only allowing payment holidays by following Government guidelines relating to the Coronavirus outbreak and therefore is currently only allowed for a set period of three months.

If my customers take a Coronavirus related payment holiday, can they take another payment holiday in the future?

No. Vida Homeloans has only temporarily allowed payment holidays as a result of COVID-19. Vida Homeloans does not normally allow payment holidays.

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

All borrowers can apply for a payment holiday as a result of COVID-19. Please call our Mortgage Services team on 0344 892 0155.

If my customer applies for a payment holiday, do they need to provide any proof?

No. Vida Homeloans recognises that these are unprecedented and difficult times for customers. We are offering our customers who are potentially impacted by COVID-19 the ability to self-certify if they need help. It’s important to remember your customer will still owe the money and interest will continue to accrue whilst the deferred payments remain unpaid. 

As an alternative to a payment holiday, could they change their mortgage to interest only?

Yes. Vida Homeloans will consider temporarily changing the customers repayment method from capital & repayment to interest only. We will need to do a full affordability assessment before we can do so. If your query is urgent, please ask your customer to call our Mortgage Services team on 0344 892 0155 to find out more.

Does a payment holiday apply to Buy to Let customers?

Yes. Please note the expectation is that the relief is passed on to the customers tenants.

What does a mortgage payment holiday mean?

As a result of COVID-19, Vida Homeloans will allow their customers an option to have a break from their monthly mortgage payment for an agreed period of time. The agreed period currently set out by the UK Government is three months.

The payment holiday means that the payment is deferred to a later date but it’s important to ensure our customer understands that they will still owe the outstanding balance and that interest will continue to accrue whilst the deferred payments remain unpaid.

If any of my customers are affected by the Coronavirus (Covid-19) and are unable to meet their mortgage payments, can they apply for a payment holiday?

Yes. If any of our borrowers are directly affected by Covid-19, and will be unable to meet their monthly mortgage payment, please advise them to call our Mortgage Services team on 0344 892 0155 so that we can discuss the best option for them.

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 my customer takes a payment holiday, will their credit record be affected?

No. An agreed payment holiday will not affect your customers credit record.

Will you give my customer a three-month payment holiday?

Yes. Vida Homeloans will give all borrowers who are potentially affected by COVID-19 a payment holiday. A payment holiday is a way to defer their monthly instalment, but it will still be payable in the future and their account will still accrue interest meaning a payment holiday may not be the best option for everyone. Please assess your customers situation and advise accordingly which is the best option to suit their current needs & circumstances.

What evidence will you need in order to qualify for a payment holiday?

No evidence is currently needed. However it’s important to remember that your customers will still owe the money and interest will continue to accrue whilst the deferred payments remain unpaid. 

Please assess your customers situation and advise accordingly which is the best option to suit their current needs & circumstances.