Lenders begin contacting borrowers who have deferred loans

Blog 1100x733 deferrals end

If you’ve deferred your home or business loan then it’s likely your bank will reach out to you in the coming weeks. Here’s what to expect and what options are available to you.

As the initial wave of six-month loan payment deferrals comes to an end, banks have started contacting customers to discuss the next step, which could include further support, assistance or deferral.

Of the more than 900,000 loans which have been deferred during the pandemic, at least 450,000 borrowers will be contacted as they approach the end of their loan deferral in September and October.

That includes 260,000 mortgages and more than 105,000 business loan deferrals to small and medium businesses that will be assessed.

The important thing to know is this: you have options

No one likes to be caught flat-footed. And if you’ve deferred your loan, the last six months have understandably been quite a stressful period.

Rest assured, however, that there are a range of options we can help you consider before the bank phones to see if you can resume your pre-covid loan repayments.

Those options include:

– switching to interest-only repayments for a period of time
– renegotiating your rate with your current lender
– refinancing to another lender
– debt consolidation, or
– a combination of these and other measures.

And if none of the above options are feasible right now you can seek a further four-month deferral with your lender – but at least you’ll know that you’ve fully explored the other potential avenues first.

We’re here for you

If you’d like to explore some of the above options before your lender contacts you then please feel free to get in touch today.

We’re here to help you with your loan any way we can – whether that be deferring, refinancing, or renegotiating.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

We thought you might also like...

Blog 1100x733 refinance 2023

How much can you really save by refinancing?

Not sure what refinancing is all about? You’re not alone. Our quick explainer lets you master the basics and helps you work out....
Read More >
Blog 1100x733 xmas 2021

Season’s greetings! Here’s to a prosperous 2022!

To all our terrific clients: thank you for your ongoing support and for being such wonderful, loyal clients.
Read More >
Blog 1100x733 offset account 2024

Why offset accounts are hitting new highs

Spare cash can be tight right now (cost of living crunch, anyone?). But if you’ve still got some savings plus a home loan,....
Read More >
Blog 1100x733 first home buyer saving drop

Time to jump in? First home buyer deposit saving times plunge

Home loan headlines have been, let’s face it, a bit of a downer of late. But the good news is that first-home buyers are now....
Read More >