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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. 

During payment holidays, you can make payments towards your loan at any time. While you don’t need to make any additional payments, doing so could mean that your loan finishes earlier and that you pay less interest overall.

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?

Your payment holiday won’t be recorded on your credit file. This means taking one won’t affect your credit score, but lenders may take it into account if you apply for credit in the future.

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.

I have Motor PCP Finance, will a payment holiday change the value of my car when it comes to making my balloon payment?

At the end of your Motor PCP Finance, you have the option to pay a final balloon payment if you intend to keep the car. This balloon payment is set when you sign your agreement, and is based on the Guaranteed Minimum Future Value (GMFV) of the vehicle at the point when this is due to be paid.

During a 3 or 6 month payment holiday, the value of your car may reduce to be lower than the GMFV due to depreciation. Irrespective of this, your final balloon payment will remain the same. If you decide to change your decision as a result of this and would prefer to hand the car back to us at the end of your finance agreement, we will honour the original GMFV and settle your finance irrespective of any potential changes to the car’s value.

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.  

Is it possible to further extend my Buy-Now, Pay-Later period after my initial 3-month payment holiday finishes

Yes, we can extend your Buy-Now, Pay-Later period by a further 3 months by applying a second payment holiday.

This could provide additional time to pay your finance in full before the end of your Buy-Now, Pay-Later period, and before any interest is accrued as described in your finance agreement. You can still make payments at any time during your Buy-Now, Pay-Later period to reduce your balance.

Remember, once your Buy-Now, Pay-Later period finishes (including any payment holidays applied) then interest will be accrued if your account still has a balance outstanding.

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:

**PLEASE NOTE: If you have already received a payment holiday and would like to apply for a second payment holiday, you will need to speak to us to discuss your current circumstances. We WILL NOT be able to process your request through our web form. Please call us on 0800 161 5218 for further support

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 are 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.

We also have some easy-to-follow guides on budgeting, saving, planning for the future and handling debt on our Money Management page at barclays.co.uk/money-management.

For free, independent advice, you can also contact the organisations below:

  • StepChange Debt Charity – call them on 0800 138 1111 or go to stepchange.org
  • My Money Steps – for help managing your money, go to mymoneysteps.org
  • National Debtline – if you live in England, Scotland or Wales, go to nationaldebtline.org or call 0808 808 4000

*To maintain a quality service, we may monitor or record phone calls. Find out about the cost of calls at barclays.co.uk/call-charges. Lines are open Monday to Friday from 9am-5pm, and on Saturday from 9am-1pm.