Natwest - Loan Payment Holiday

lukesnowden

Hi, I've noticed that in a lot of articles it states that Natwest is supplying 3 month payment holidays on loans.
Yet all I can find online and through my app is that they are offering a 3 month loan repayment deferral which isn't a holiday.
On top of that it appears they are offering international customers the option for a payment holiday https://www.natwestinternational.com/global/forms/loan-payment-holiday.html so I am unsure on whether I am looking in the wrong place or the only option for UK customers is the deferral.

Any help appreciated.
Regards

bradders1983

"Yet all I can find online and through my app is that they are offering a 3 month loan repayment deferral which isn't a holiday."

Of course its the same thing. It defers the 3 missed payments onto the end of the existing loan period. Or did you think the scheme allowed people to never pay the payments back at all?

LABMAN

Holidays have to be pad for...no such thing as a 'free' holiday!.

lukesnowden

bradders1983 said:

"Yet all I can find online and through my app is that they are offering a 3 month loan repayment deferral which isn't a holiday."

Of course its the same thing. It defers the 3 missed payments onto the end of the existing loan period. Or did you think the scheme allowed people to never pay the payments back at all?

Hi, no not at all.
As stated in the link above;

At the end of your payment holiday your monthly payments will be re-calculated and will increase to cover the additional interest accrued during the holiday period. Your loan term will be extended by the same period as your holiday.

Yet with the deferral, you have to pay the arrears of the holiday plus interest plus the original loan agreement (not the full loan amount) within 18 months which is why I said the deferral is not the same as a holiday.

 Regards

bradders1983

Its standard parlance in finance. Yes its a break but you still have to pay up at the end and that includes extra interest. If you dont like the terms, carry on paying.

khod9e

bradders1983 said:

Its standard parlance in finance. Yes its a break but you still have to pay up at the end and that includes extra interest. If you dont like the terms, carry on paying.

I’m not quite sure you are understanding what lukesnowden is saying. Yes it’s clear he is well aware that it has to be paid back. However how NatWest are doing payment holidays compared to other big banks on the high street or should I say are explaining it is a lot more complicated and more costly. I have friends in the same boat who are taking the payment holiday for a mortgage with them and have been told just to cancel their direct debit!!! Completely ridiculous advise without official confirmation of a break. So perhaps NatWest need to be a little clearer on their policies???