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Coronavirus and your finance

If you're concerned about any aspect of your finance because of the continuing coronavirus situation, we can help.

We have fewer colleagues than usual answering the phones right now because of the coronavirus outbreak.  This is having a big impact on our call wait times – we’re truly sorry about this.

How we can help

When and how should I contact Barclays Partner Finance

We’re currently trying to help a large number of our customers through the uncertainty, and we expect this to continue over the next few weeks. On this basis, please read these FAQs carefully before deciding what to do next, so we can focus on people in the most vulnerable situations.

How are Barclays supporting their customers impacted by coronavirus?

We’re offering a number of ways to support customers who have been financially affected by the coronavirus and we may be able to offer you a 3-month payment holiday.

What is a payment holiday?

A payment holiday is a temporary break from your finance payment to help you through financial difficulties caused by the coronavirus pandemic. It doesn't mean you'll never need to make those payments - instead, you'll make these payments when you've made all the other payments towards your finance.

It's important to remember that even though you might not be making the payments for three months, you'll be still charged interest on the amount you've borrowed - and that could mean you end up paying more interest than you would have done if you hadn't taken the payment holiday. Taking a payment holiday won't affect your credit score.

Am I eligible for a payment holiday?

To save you time, please check the criteria below before calling us.

At the moment, we’re only offering payment holidays if you have finance with us, and if your income has been directly affected by the coronavirus situation.

If your Direct Debit payment is due within the next 8-10 days, your payment may be pending and we will need to allow this payment to go through successfully. If this happens, we will apply the payment holiday starting from your next monthly payment.

If you have already taken a payment holiday on your account because of Coronavirus then we cannot apply another.

Does a payment holiday affect my credit file?

No – arranging a payment holiday won’t harm your credit file.

Will I be charged interest while the payment holiday is in place?

Yes, we’ll continue charging interest on your finance, unless it’s an interest free agreement. Any interest calculated during this period will be due at the end of your loan. You will not have to make any payments during the holiday period.

How will this affect my loan payment at the end of the holiday period?

We will extend the term of your agreement by three months. Any additional interest will be payable at the end of the extended term. If you want to reduce the total amount of interest you will pay then you can contact us to pay off that extra interest before then at any time.

We will write to you again before your payments are due to recommence and remind you what payments are due under your agreement.

Will I have to prove my financial difficulty as a result of coronavirus?

We won’t ask you to provide evidence, but we’ll need to work through your individual circumstances to find the most appropriate way to support you.

How quickly can you pause my payments?

A repayment holiday will need to be agreed 8-10 days before your next payment to take effect.

If your Direct Debit payment is due within the next 8-10 days, your payment may be pending and we will need to allow this payment to go through successfully. If this happens, we will apply the payment holiday starting from your next monthly payment.

What if I have Motor PCP finance?

PCP Payment Holidays

If you have Motor PCP finance there are some additional elements to consider when applying for a payment holiday so please review the below:

The final repayment due under your agreement (sometimes referred to as a ‘balloon’ payment) will be due 3 months later than was set out in your original agreement.

All of the terms and conditions of your agreement will continue to apply during your extended term.  This includes your obligation to keep the car taxed, insured and have a valid MOT. 

We will not hold you liable for any additional depreciation in the value of the vehicle as a result of the three-month extension to your term, as long as this falls within fair wear and tear as set out in your agreement. 

We will also honour the original Guaranteed Minimum Future Value (GMFV) of the vehicle as set out in your agreement if you wish to hand the car back to us.

Your final year’s annual mileage allowance will also be increased by 25% to reflect the additional time the car has been in your possession. So for example, if your annual mileage limit is 12,000 miles we will increase it by 3,000 miles to cover the extra 3 months you will have the vehicle.

Handbacks and Part Exchange

If you would prefer to hand back your vehicle at the end of your agreement, this option is still available and we can arrange a collection of your vehicle.  Please visit our FAQ page and open ‘what are my options at the end of my personal contract purchase finance’ for details.

If you wish to part exchange your vehicle but are currently unable to do so as a result of dealership unavailability, please review the full details found within this FAQ page to assess your eligibility for further support.

What if I have Buy-Now, Pay-Later finance?

If you have buy-now, pay-later finance a payment holiday may work slightly differently so please review the below:

If you haven’t yet started making your monthly payments, the payment holiday will delay the date your first payment is due by 3 months. This will mean you have an extended buy-now, pay-later period.

However, you may have already started making your monthly payments, in which case we will not collect your next 3 payments. Instead, you'll make these payments when you've made all the other payments towards your finance.

By repaying your loan in full during the extended buy-now, pay-later period you will pay no interest but you will have to pay your ‘early settlement fee’ if one was specified when you signed your agreement.

We will charge you interest on the remaining balance if you do not repay the loan in full during the extended buy-now, pay-later period. However, if you make partial payments towards your finance during the extended buy-now, pay-later period, you will pay less interest overall.  

How much extra might a payment holiday cost?

During the payment holiday we may continue charging interest on your Barclays Partner Finance loan. How much will depend on a few things including your loan type, loan balance, interest rate and remaining term. Additional interest will only be charged if you have an Interest Bearing loan, where your interest is accrued daily and applied monthly based on your balance.

If your loan is any of the types listed below you will not be charged any additional interest during your Payment Holiday.

  • Interest Free
  • Buy Now Pay Later
  • Motor (Car) Finance
  • Caravan Finance

If you are unsure what type of loan you have with us please refer to your original agreement, if you don’t have this to hand you can request a copy using our web form

Interest Bearing Loan - Example 1

Interest Bearing Loan - Example 2

Interest Free - Example 3

Remaining loan balance

£4,000

£1,500

£5000

Number of monthly payments remaining

56

28

60

Loan APR (Annual Percentage Rate)

8.9%

14.9%

0%

Monthly payment amount

£86.89

£63.08

£83.33

Additional interest charged during 3 month payment holiday

£129.50

£74.27

£0.00

  • Examples 1 & 2 (Interest Bearing loan) are examples where extra interest would be charged.
  • Example 3  (Interest Free) is an example where no interest would be charged.
  • The figures above are for illustration only and based on a typical loan rate and remaining term. They assume payments remain up-to-date until the end of the loan with no overpayments.
  • If we approve your payment holiday application, the amount of extra interest charged will vary depending on the rate stated in your loan agreement and remaining term. It won’t need paying until the end of the loan, but can be reduced by making overpayments during the term of the loan.

So what do I do next?

If you have read through the above and want to apply for a payment holiday, please use the web form from the link below:

Alternatively, if your payment is due within the next 8-10 days then call us on 0800 15 22 888 so that we can assist you ASAP. Our opening times are Monday - Saturday: 9am - 6pm.

If you do not want to apply for a payment holiday, but want to discuss what other options are available, then please contact our Financial Assistance team on 0800 16 15 260 (Monday - Friday: 9am - 5pm & Saturday: 9am-1pm)

Please be aware, we have fewer colleagues than usual answering the phones right now because of the coronavirus outbreak. This is having a big impact on our call wait times – we’re truly sorry about this.

My payment holiday is ending soon

If your Barclays Partner Finance payment holiday is ending, and you think you’ll struggle to resume your payments, the following may help you to understand what will happen next.

What will happen to my loan payments?

During your payment holiday we might have charged you interest as normal and added it to your balance – this is only if you have a loan with interest, where your interest accrues daily and is applied to your balance each month. If we’ve charged you additional interest, you’ll need to pay it at the end of the loan, but you can pay it earlier if you want to.

When your payment holiday’s come to an end, your monthly payments won’t go up to cover your deferred payments. Instead, you’ll have to make additional monthly payments at the end of the loan – you’ll need to make these on your normal repayment dates.

What do I need to do next?

If you normally pay by Direct Debit and haven’t cancelled it, you don’t need to do anything – we’ll automatically start collecting your payments.

If you’ve cancelled your Direct Debit, you’ll need to set a new one up to make sure you don’t miss a payment. To do this, please call us on 0800 15 22 888, or complete a Direct Debit Mandate.

You’ll then need to post it to Barclays Partner Finance, PO Box 2501, Cardiff CF23 0FP within 10 days of the date of this letter.

However you pay, if you miss any payments you could go into arrears and your credit file might be affected. If you can’t make your payments, take a look at the ways we can help you below.

Can I make additional payments?

If you prefer, you can overpay your loan, including the total amount of your deferred payments, any time. This will make the total balance lower and could mean you pay less interest. To do this, please call us on 0800 15 22 888,

We’re receiving more calls than usual right now because of the coronavirus situation, so please bear with us as it might take a little longer to get through.

Money worries? We’re here to help

If you’re worried about money or can’t make your monthly payments, there are lots of ways we can support you. Talking to us about your financial situation and any issues affecting your ability to pay makes it easier for us to help. Please call us on 0800 161 5218 and we’ll talk through your options. You can also head to our Money Management advice page at barclays.co.uk/money-management.