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Covid-19 and your mortgage

We know this is a difficult time and we are here to help.

You'll find help and support on this page to help you manage your mortgage during the coronavirus outbreak.

1. What is a mortgage payment holiday?

When you ask to stop paying all of your monthly mortgage payment for a short period, we call this a 'payment holiday'.

It can help if you have any changes to your situation, such as unexpected household costs or other changes to your personal or rental income.

However, it's important to remember that the amount you pay each month will go up after a payment holiday. This is to cover the payments and interest charges you'll miss when you take a break, so you should only apply for one if you are finding it hard to keep up with your payments.

If the coronavirus has affected your personal or rental income and you need some breathing space, a payment holiday or our other support options could help.

Use our Covid Support Tool to find out more about how we can support you.

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2. Can I make payments during the payment holiday period?

You can make additional payments during your payment holiday period. If you do this, your monthly payment and the amount you pay back overall will be lower than if you don't make payments.

If you have missed payments prior to your payment holiday, any additional payments made during the payment holiday will be applied to these first.

You will need to make separate payments to your mortgage as they will not be collected by your normal payment method.

You can set up regular overpayments by standing order from any bank using:

Lloyds Bank
Sort Code: 30-02-50
Account code: 04968773
Account Name: Birmingham Midshires

Please ensure the payment reference states:
Mortgage account number
Customer surname (if reference field allows)

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3. Can I take a payment holiday?

We know that some of our customers are anxious about being able to keep up with their mortgage payments at the moment. If the coronavirus (COVID-19) outbreak has had an impact on your ability to pay your mortgage, don't worry. We'll do everything we can to help you.

You can ask to take a payment holiday, as long as you're no more than 6 months behind in your payments. If you are more than 6 months behind in your payments, call us as we have other ways to help.

If you have a joint mortgage, all parties named on the account will need to agree to the payment holiday.

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4. How do I ask to take a payment holiday?

If the coronavirus has affected your personal or rental income and you need some breathing space, a payment holiday may help.

Find out more about the support we can offer and how to apply with our Covid-19 support tool.

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5. How do I cancel a payment holiday?

If you currently have a payment holiday in place and want to cancel it, you should complete our payment holiday cancellation form.

Please note that if your next mortgage payment would normally be due in the next 14 working days, then the payment holiday may not be cancelled until the following month. We will confirm in writing the date from which your payment holiday has been cancelled.

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6. Can I change the amount I pay during my payment holiday?

If you choose to make additional payments during your payment holiday and want to change the amount you pay, you can do this by changing your standing order with your bank.

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7. Do I need to cancel my Direct Debit if I take a payment holiday?

No, you don't. When you agree that you can take a payment holiday we'll stop collecting your payments. It's important that you don't cancel your Direct Debit so we can start collecting payments again when your payment holiday ends. If you cancel your Direct Debit we won't be able to take payment and your account may fall into arrears.

If you have cancelled your Direct Debit, please use our online form to ask us to set it back up for you, using the same bank details as before.

Restart my Direct Debit.

If you pay by standing order, you'll need to restart your monthly payments before the next one is due. It's important to remember to do this to make sure your account doesn't fall into arrears

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8. What happens when my payment holiday ends?

When your payment holiday ends, the amount you pay each month will go up. If you've made additional payments during your payment holiday it will still increase but not by as much. This increase is to cover the interest charges and payments you miss while you take a break or make reduced payments.

If you have missed payments prior to your payment holiday, any additional payments made during the payment holiday will be applied to these first.

We will contact you before the end of your payment holiday to explain all the ways we can help if your personal or rental income is still affected by coronavirus. In the meantime, our Covid-19 Support Tool will show you all the ways we can help.

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9. Will a payment holiday affect my credit score?

Payment holidays will not have a negative impact on your credit file. However, you should remember that lenders may use information obtained from other sources, such as bank account information, in their lending decisions.

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10. The coronavirus has affected my income and I've missed my mortgage payment. What can I do?

Don't worry. Just let us know as soon as you can and we'll do everything we can to help you, until things get back to normal.

If you've missed payments before your payment holiday began and were in arrears, your new payment won't cover any of those missed payments. It's important you contact us to talk about your options for paying the arrears.

We are currently dealing with a higher volume of calls than usual as a result of the coronavirus (COVID-19) outbreak. You may have to wait longer than usual to talk to us on the phone.

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11. What are my options if I can't take a payment holiday?

If you don't qualify for a payment holiday, or feel that a payment holiday isn't right for you, there are other options that you can consider, including:

  • To change the term or repayment type on your BTL mortgage call us on 0345 300 2627.
  • To switch to a different product or if you need advice on your BTL mortgage contact your Broker or an independent financial adviser.
  • To change the term or repayment type on your Residential mortgage or to switch to a different product call us on 0345 300 2627.

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12. Can I cancel a term extension?

If you've asked us to extend the term of your mortgage but you have changed your mind, our online cancellation form is the quickest way to cancel it. It's easy to complete and should only take a couple of minutes.

If we've confirmed your term extension but it hasn't started yet, you can still cancel it using our online form.

We'll cancel your term extension from the next month, but we might not be able to cancel it before your next payment is due. We will write to you to confirm your new monthly payment amount and the date it will be effective from. This could be different to the amount we originally gave you, as we've worked it out using the latest balance.

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13. My deal is coming to an end. How do I switch deals while I'm self-isolating?

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14. I'm approaching, or already past, the end of my mortgage term. What do I do if I'm worried my plans won't be enough to repay what I owe?

If you think you may struggle to repay your full interest only balance, let us know as soon as possible. However long you have left, the sooner you get in touch, the more solutions you may have.

One option available to residential interest only customers (not applicable to Buy To Let mortgages) whose mortgage term ends between 20th March 2020 and the 31st October 2021, is to delay repaying the full amount until up to 31st Oct 2021.

If your term ends between these dates and you want to discuss this option or other solutions you may have, call us on 0800 056 2980. Lines are open Monday to Friday 8am - 8pm and Saturday 8am - 1pm.

Please note: If you have missed any payments without our agreement and your account is not up to date, you will not qualify to delay repayment. If you do take the option to delay the repayment of your mortgage, we'll continue to collect your monthly payments and charge interest until you pay the amount you owe. You can repay at any time before 31st October 2021 and the sooner you do, the less interest you'll pay.

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15. I need a property valuation, what should I do?

Following changes in Government legislation, we're now able to do physical property valuations again. This is when a professional surveyor carries out a valuation on the property in person.

We'll get in touch with you, or the current property owner, to arrange an inspection if we decide we need to visit the property, and we'll tell you how to prepare.

Chartered Surveyors, e.surv, are doing physical valuations on our behalf. They'll contact customers whose survey was previously put on hold, so there's no need to contact us.

Please be aware that inspections might take longer than normal due to surveyors needing to follow health and safety requirements, including use of PPE and cleaning equipment between appointments.

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16. My mortgage deal is in the process of being changed. Could the coronavirus stop that happening?

If you've already completed an application to switch to a new deal, you don't need to do anything. We'll continue to process your switch as usual.

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17. Could the coronavirus outbreak stop my mortgage application being completed?

If your situation hasn't changed since you applied, there's nothing to worry about.

If there's been a change to your income, please get in touch.

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18. I'm a landlord and my tenant is struggling to pay the rent. What are my options?

Our Buy-to-let customers can now ask to take a payment holiday of up to three months. To ask for one, use our online Covid-19 support tool.

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For telephone line opening times, please read the information in our contact section. Calls may be monitored and recorded for security and training purposes.

Our tracker rate mortgages are linked to Bank of England Bank Rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England website or in the Financial Times or other leading newspapers.

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© Birmingham Midshires

This site is intended for UK residents unless otherwise stated. Mortgage Loans will be made by Birmingham Midshires.
Birmingham Midshires is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ.
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