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Mortgages

Mortgage payment difficulties due to Coronavirus

What is a mortgage payment holiday?

With a payment holiday you will not have to make any monthly mortgage payments for a set amount of time, in this case up to three months.

However, it’s important to remember that you still owe that money and the interest on your mortgage still accrues during a payment holiday.

At the end of the payment holiday we will contact you to assess your circumstances and agree a manageable way for you repay the interest charges incurred and make up the deferred payments. We will have a range of options available to help you to do this.

How do ‘payment holidays’ work?

The mortgage repayment is deferred for a period. The monthly payment changes to zero, and interest accrues for the period. This may be particularly appropriate where there is a temporary shortfall of income.

However, this is not a solution where, because of a permanent reduction in income, a borrower is unable to afford anywhere near the full mortgage repayments and there is little prospect of an improvement in the situation in the foreseeable future.

Where repayments are deferred for a time, the borrower will need to make up these repayments in the future, which could be over the remaining term.

Am I eligible for a payment holiday?

To be eligible for a payment holiday you will need to be up to date on your mortgage payments.

If you are a Buy-to-Let landlord, it will be available if your tenants have lost income because of the impact of Coronavirus.

There a number of options available and payment holidays aren’t always the most suitable solution for everyone. By speaking to us, we can tailor the best option for you.

Will all customers receive an automatic three-month payment holiday?

A flexible approach will enable all types of lenders to offer the right support for customers. We will want to speak to you to find out how we can tailor the best option for you.

We will help customers the best way for the individual, but an automatic payment holiday may not always be the most suitable approach and may not be required by all customers.

We are speaking to credit reference agencies to ensure consistent treatment of those customers to whom a repayment holiday is made available.

Can anyone apply for a Coronavirus mortgage payment holiday?

If you're in financial difficulty as a result of Coronavirus and are concerned about making your mortgage payments during this time you should contact us as soon as possible.

You don’t need to provide any documentation; however you will need to self-certify that your income has been either directly or indirectly impacted by Coronavirus.

How do I apply for a mortgage payment holiday?

If you are concerned about making your mortgage payments during this time you should contact us as soon as possible. You don’t need to provide any documentation; you will just need to self-certify that your income has been either directly or indirectly impacted by Coronavirus.

If you are a Buy-to-Let landlord, you will need to self-certify that your tenant’s income has been impacted by Coronavirus. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.

At the end of the payment holiday we will contact you to assess your circumstances and agree a manageable way for you repay the interest charges incurred and make up the deferred payments. We will have a range of options available to help you do this.

How long will it take for you to process my payment holiday application?

We are doing our best to support our customers during these unprecedented times. However, the impact of Coronavirus is also having an effect on our own teams and applications will be dealt with as quickly as possible.

What happens if I am already in arrears, and I need a mortgage payment holiday?

If you are concerned about the impact Coronavirus will have on your income, then you should contact us as soon as possible. We will review any changes to your circumstances to ensure that your payments remain sustainable. We will make every effort to support people already in financial difficulty, while ensuring a mortgage remains sustainable.

Mortgage providers have agreed to a three-month moratorium (from 19 March 2020) on residential and buy-to-let possession action, meaning that no homes will be repossessed at this difficult time.

What if I need support longer term or help to recover to my previous position after the payment holiday expires?

While the payment holiday is in effect, the capital sum of the loan remains as is, while the interest that would have been paid in the period accrues.

At the end of the payment holiday period, the rules will re-apply. We will get in touch with you to assess your circumstances, including income and expenditure, and come to an arrangement with you to enable recovery through the full repayment of the arrears.

If you are in financial difficulty; we will come to an arrangement to recover you into a sustainable position on the mortgage. Any forbearance arrangements will aim to minimise the risk of possession.

Will a mortgage payment holiday be applicable to customers with Help to Buy loans?

Homes England have stated that homeowners who are struggling to pay interest fees on their Help to Buy equity loans will be offered payment holidays, this is applicable for Help to Buy customers who are paying interest on their Equity Loans

Help to Buy: Equity Loans are interest-free for the first five years. Therefore, this announcement will apply to those who took out the loan before 31 March 2015.

 

The Help to Buy Director Will German at Homes England said:

We will do all we can to support Help to Buy customers through this unprecedented period of economic uncertainty. Like other lenders, we will offer payment holidays for those who are struggling to pay interest fees on their equity loans.

We will also offer a range of flexible payment options to defer interest payment for a period. In all cases, we will seek to support households in difficulty.

We understand monthly mortgage payments tend to be the largest outgoing for the vast majority of households. Where households also have equity loan payments under the Help to Buy scheme, we are keen to reassure them that we will offer similar options to their main mortgage lender.

We will assess all cases of hardship on a case-by-case basis. The first step is for customers experiencing difficulty related to Coronavirus to contact their main mortgage lender to discuss revised payment arrangements.

General mortgage questions

What is an Approved Solicitors Panel?

Our Approved Solicitors Panel is made up of a group of solicitors we've worked with before and trust to act on your behalf. Take a look through the pdf to find a solicitor near to you. 

If you choose to appoint a firm that is not on our panel, we will require our own partner Solicitor to act on our behalf. You will be responsible for our legal fees in addition to your own legal fees. 

What charges might I incur with my Cambridge Mortgage

There may be fees associated with your mortgage from getting it to changing or ending it. We want to make sure you understand the fees that may apply to you, so, we've worked with the Council of Mortgage Lenders and Which? to show these clearly, take a look at the pdf to see all our fees. 

My Solicitor isn't on your panel, can they join it?

Solicitors that are using Lender Exchange can join our panel. They'll need to log in at www.lenderexchange.co.uk and apply to join there. 

Solicitors not on Lender Exchange can call them on 0344 244 3784 to discuss the application process.

Can I view my mortgage account online?

You can view all your accounts with The Cambridge via our website or money app – it’s simple and secure. To get started, simply call us or pop into your nearest branch to request your User ID and we’ll talk you through the rest.

Where do you offer mortgages?

Our mortgages are available on properties located in England and Wales.

Do you offer mortgages on holiday lets?

Yes, you can find our Holiday Let mortgages here

What age restrictions are there on mortgages from The Cambridge?

The minimum age is 21. There is no maximum age limit.

Can I get an Interest Only mortgage with The Cambridge?

Interest Only repayment options are available across our mortgage range on loans of up to £500,000 with a maximum loan to value of 70%. Interest Only mortgages are subject to criteria and the suitability of proposed repayment methods – talk to our team to find out more.