Banks to allow customers to defer mortgage payments

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Taxpayer-owned bank RBS will allow people affected by the coronavirus outbreak to defer mortgage and loan repayments for up to three months.

TSB said it would also allow a mortgage window, but for two months, and both banks said savers could close fixed-term savings accounts without charge.

This is designed to allow people to access cash if they need it as the impact of the virus is felt.

Banks are also announcing extra support for affected businesses.

Other support for individuals facing financial difficulties owing to the virus includes:

  • Refunds on credit card cash advance fees
  • The option of applying for an temporarily increased credit card borrowing limit
  • Asking for an increased cash withdrawal limit of up to £500

The measures are similar to those already in place for people facing financial difficulties.

“We understand that there may be circumstances where a personal customer may fall into financial difficulty as a result of the impacts of coronavirus, for instance, loss of income,” a spokesman for RBS said.

“We will look to understand each customer’s situation on a case-by-case basis and can offer a number of options to help them manage their finances.”

UK Finance, which represents the major banks, said that all banks would consider increasing overdrafts or allowing repayment relief for loan or mortgage repayments for those affected by the virus.

“We would encourage customers who think they may be affected to contact their provider as soon as possible to discuss the support available to them,” said its chief executive, Stephen Jones.

Source: BBC News

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