If your loan is any of the types listed below, we won’t charge any additional interest during your payment holiday or reduced payment plan.
- Interest free
- Buy now, pay later
- Motor (car) finance
- Caravan finance
If you’re not sure what type of loan you have, you can find out by checking your original agreement. If you’ve lost your original agreement, you can ask us for a copy using our web form.
How will extending my payment holiday affect my motor finance?
At the end of your Motor Personal Contract Purchase (PCP) finance agreement, you’ll usually have the option of making one final balloon payment if you’d like to keep the car. You agree this final payment amount when you sign your agreement, and it’s based on what the car’s Guaranteed Minimum Future Value (GMFV) will be at the end of your payment period.
During a three-or six-month payment holiday, your car’s value might depreciate and fall below the GMFV, but your final balloon payment will stay the same.
If you’d prefer to return the car back to us at the end of your finance agreement, we’ll honour the original GMFV and settle your finance without taking into account any potential changes in value.
How will it affect my motor finance annual mileage allowance?
Your annual mileage allowance will have increased by 25% during your first payment holiday. Extending your payment holiday for another three months will increase your annual mileage allowance by a further 25%.
For example, if your original annual mileage limit was 10,000 miles, this will have increased by 25% to 12,500 miles during your first payment holiday. When you extend your payment holiday, your annual mileage limit will increase by another 25%. This would mean that your annual mileage limit after both payment holidays would be 15,000 miles.
How will extending my payment holiday affect my Buy Now Pay Later finance?
If you’d like to extend your Buy Now Pay Later period by another three months, you can apply for a second payment holiday.
We won’t charge you any extra interest, and you can still make payments at any time to lower your balance.
This would give you more time to pay off your finance in full. When your Buy Now Pay Later period ends (including any payment holidays), we’ll start charging interest on any remaining balance.
Will any of these options affect my credit score?
No – it won’t be recorded on your credit file, so it won’t affect your credit score, but lenders might take it into account when making future lending decisions.
Am I eligible?
You can apply if you’ve already taken a payment holiday that’s coming to an end, and your income is still temporarily affected because of coronavirus.
Can I take another payment holiday if I have already had two payment holidays from Barclays Partner Finance?
If you have already had two payment holidays or one payment holiday plus a short term rebuild plan, then please call us to discuss the options that are available to you on 0800 161 5218
What if my payment’s due in the next seven days and I can’t afford to pay it?
We usually start the payment holiday or reduced payments from the following month, which means you’d need to make this payment. If you can’t afford to do this, please fill in this form and apply for more support, as we might still be able to help you.
How much extra will my payment holiday or reduced payment plan cost?
During your payment holiday or reduced payment plan, we might still charge interest on your Barclays Partner Finance loan. How much depends on a few things, like your loan type, loan balance, interest rate and remaining term. We’ll only charge extra interest if you have an interest-bearing loan, for which interest is accrued daily and applied monthly, based on your balance.
I didn’t cancel my Direct Debit, and my payments are due in the next seven days
It might be too late to stop the next payment from being collected. If you don’t think you’ll be able to cover it, please call us straight away on 0800 161 5218 – we’re here Monday to Friday from 9am to 5pm, and on Saturdays from 9am to 1pm.
How do I apply?
We’ll write to you with more information on what to do next – keep an eye out for our letter in the post. You don’t need to call us. If you still need support after your payment holiday ends, you can apply online using the payment holiday ID in the letter.