Barclays Partner Finance payment holiday ended
Your questions answered
If you need support as your payment holiday comes to an end, here’s how we can help.
Supporting you after your payment holiday
Now your payment holiday has ended, there are a number of different scenarios you could be facing.
The information on this page is for people who have had a payment holiday which has ended.
I’m comfortable with my Barclays Partner Finance payments starting again
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We’ll automatically restart Direct Debits when your payment holiday ends, so you don’t need to do anything.
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If you’d like to set up a new Direct Debit, you’ll need to contact your bank first, then contact us.
It’s important that you speak to your bank before calling us, otherwise your payment might not go through and you could fall behind on your payments.
It can take up to 14 working days to set up a Direct Debit, so please make sure you’ve got time before your next payment’s due. If you can’t set it up in time, there are a number of other ways you can pay .
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You could set up a Direct Debit instead, as this is the easiest way to pay. Just contact us to set one up. Otherwise, you’ll need to set up a new standing order on the account you want to make the loan payments from. If you’ve just paused your standing order, make sure it’s set to start again in time for your next loan payment.
I need help with my Barclays Partner Finance payments
Here are some frequently asked questions to help support you.
What do I do if I need support making my payments?
If you need support after your payment holiday ends, contact us.
How has my loan been affected?
We’ve deferred the amounts that would’ve been due during this time to the end of your loan, and if you have a daily interest product we’ll keep charging interest on both your loan and the amount you deferred. This means there’ll be some extra monthly payments to make, and a final payment to clear the balance.
Now your payment holiday has ended, you’ll go back to paying the same amount you did originally, as stated in your loan agreement – we won’t change your monthly payment amount.
You’ll have the option to make extra payments to your loan during this time, if you wanted to and were able. This would help to lower your balance and, if you have a daily interest product, would reduce the amount of extra interest we’d charge – so you’d pay less in the long run. You could pay as much or as little as you wanted, at any time and any frequency.
We will have written to you with information on what to do next now your payment holiday has ended.
Examples
The tables below show how each option might change the cost of your loan. All examples are based on a three-month payment holiday having already been taken.
This example is based on a remaining loan balance of £4,000, with an interest rate of 8.9% and 56 months left on the loan.
|
Return to full payments after an initial three-month payment holiday |
Extend payment holiday by another three months and pay nothing |
Extend payment holiday by another three months but make some payments |
|
|---|---|---|---|
|
Current remaining loan balance |
£4,000 |
£4,000 |
£4,000 |
|
Loan APR |
8.9% |
8.9% |
8.9% |
|
Contractual monthly payment |
£86.89 |
£0 for the next 3 months Month 4 until end of loan: £86.89
The final payment to clear any remaining balance as a result of any extra interest might be different from your normal monthly payment. |
You opted to pay £45 per month Month 4 until end of the loan: £86.89
The final payment to clear any remaining balance as a result of any extra interest might be different from your normal monthly payment. |
|
Estimated interest from first three-month payment holiday |
£129.50 |
£129.50 |
£129.50 |
|
Estimated interest over another three months |
£0 |
£133.57 |
£62.83 |
|
Extra interest charged |
£129.50 |
£263.07 |
£192.33 |
This example is based on a remaining loan balance of £1,500, with an interest rate of 14.9% and 28 months left on the loan.
|
Return to full payments after an initial three-month payment holiday |
Extend payment holiday by another three months and pay nothing |
Extend payment holiday by another three months but make some payments |
|
|---|---|---|---|
|
Current remaining loan balance |
£1,500 |
£1,500 |
£1,500 |
|
Loan APR |
14.9% |
14.9% |
14.9% |
|
Contractual monthly payment |
£63.08 |
£0 for the next 3 months Month 4 until the end of loan: £63.08
The final payment to clear any remaining balance as a result of any extra interest might be different from your normal monthly payment. |
You opted to pay £30 per month Month 4 until the end of the loan: £63.08
The final payment to clear any remaining balance as a result of any extra interest might be different from your normal monthly payment. |
|
Estimated interest from first three-month payment holiday |
£74.27 |
£74.27 |
£74.27 |
|
Estimated interest over another three months |
£0 |
£77.95 |
£39.26 |
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Extra interest charged |
£74.27 |
£152.22 |
£113.53 |
These figures are for illustration only and are 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.
* APR stands for the annual percentage rate, which is the total amount you're charged for your finance shown as an annual percentage. This will include all fees and interest charges and will allow you to compare the cost of finance across different financing options, as it gives a like for like comparison.
If your loan is any of the types listed below, we won’t have charged any additional interest during your payment holiday.
- 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 has extending my payment holiday affected 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 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 has it affected my motor finance annual mileage allowance?
Your annual mileage allowance will have increased by 25% during your first payment holiday. If you extended your payment holiday for another three months this 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 extended your payment holiday, your annual mileage limit will have increased by another 25%. This would mean that your annual mileage limit after both payment holidays would be 15,000 miles.
How has extending my payment holiday affected my Buy Now Pay Later finance?
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.
Did 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.
I need help with my Barclays Partner Finance payments
If you’re experiencing longer-term financial difficulty, or you have any concerns, we can help in a number of ways. Contact us so we can find the best way to support you – we’re here Monday to Friday from 9am to 5pm, and on Saturdays from 9am to 1pm.
More ways we can help
Can I make extra payments to cover the amount I deferred on my payment holiday?
Yes you can, and there are several ways to do it. To see which option’s best for you, contact us. We’re open Monday to Friday from 9am to 5pm, and on Saturdays from 9am to 1pm.
Making overpayments means you pay off your balance quicker and pay less interest over the remaining term.
Get in touch
We have fewer colleagues than usual answering the phones right now because of the coronavirus situation. This is having a big impact on our call waiting times – we’re sorry about this. If you have an immediate financial problem that isn’t covered above, and that can’t wait, please contact us.