Natwest Personal Loan payment holiday

1AW

Hi
Ive been trying to get in touch with Natwest via phone and bot via app for days. Can’t get through or get an answer to this. I have been furloughed from work and am worried about my personal loan repayments. I know I can get a payment holiday but can’t find any information anywhere about whether this will impact on my credit rating . I have an excellent credit rating and don’t want it impacted. I’ve seen the guidance from FCA but can’t see anywhere where this has been implemented as yet. Please help

centurion_36

Have you been on there webpage. They have a coronavirus support section which gives advice on how to take a 3 month payment holiday and if you click thru there is an option to apply online

Marcio45

Hi 1AW,
I.am also thinking about the Natwest Loan holiday payment. You go through their app and instructions are on their website. As you answer the questions it does say that it will affect your credit rating. I am waiting for the new guidance from FCA to be applied, i believe the 9th april at the latest and then it should be clear that holiday payment should not affect your credit rating. I think it is a case of waiting a few more days (my next loan instalment is only next month).

dk_09

Hi, I’ve requested a repayment holiday from Lloyd’s on my loan they have accepted the request but unlike other loan companies they have charged me additional interest is that aloud?  

onlyfoolsandparking

It's looking like its allowed unless legislation changes and lenders are forced to stop charging interest. Which other loan companies are NOT charging interest, I'm unaware of any?

Jeremy535897

It is allowed, but the FCA is supposed to be issuing something soon with regard to loan and credit card payment deferrals, and capping overdraft costs. Mortgage breaks incur additional interest though, so it is likely that any extra credit on loans will be treated similarly.

motorguy

dk_09 said:

Hi, I’ve requested a repayment holiday from Lloyd’s on my loan they have accepted the request but unlike other loan companies they have charged me additional interest is that aloud?  

Yes, its allowed, as has been said.

Unless you absolutely need it, a payment holiday now will end up costing you more overall.

mattyprice4004

dk_09 said:

Hi, I’ve requested a repayment holiday from Lloyd’s on my loan they have accepted the request but unlike other loan companies they have charged me additional interest is that aloud?  

Yes, they're loaning you money for a longer period overall so interest will be due on the longer term. 
This is completely standard. 

dk_09

onlyfoolsandparking said:

It's looking like its allowed unless legislation changes and lenders are forced to stop charging interest. Which other loan companies are NOT charging interest, I'm unaware of any?

On my Tesco loan they have given me 3 months holiday repayment and told me there is no additional interest and the overall total loan amount stays the same... 

centurion_36

I got a 3 month payment holiday on my nationwide loan. They say it wont affect my credit file as they take a minimum payment of £1 per month 

lopsyfa

dk_09 said:

Hi, I’ve requested a repayment holiday from Lloyd’s on my loan they have accepted the request but unlike other loan companies they have charged me additional interest is that aloud?  

It is not additional interest - just the normal interest. By taking the payment holiday, your balance will be slightly higher than it would have been if you didn't take any holiday. So the interest accrued will be slightly more.