Do you expect much demand for further deferrals?
We have other options available to customers who might be having difficulty paying their loan.
These also include further relief under our hardship assistance programme which could provide options for customers such as (but not limited to) a further break in payments, extending the loan maturity date to reduce the level payments (but increase the number of them), or move to interest-only loans for a period.
What happens to customers who are still unable to repay their loans?
We have a dedicated Customer Financial Wellbeing Team that helps customers find a way forward. The goal is to help customers to get back into a position where they can maintain their payments.
We do this by undertaking an assessment to fully understand their financial position in order to provide solutions with the least financial impact on customers.
The approach taken will vary depending on the customer and their individual circumstances.
What sort of things does the Customer Financial Wellbeing team do?
The team gets a full picture of the customer’s financial situation and explores how the customer can continue to make payments.
This may include encouraging our customers to seek independent advice, like financial mentoring, for further assistance on the way forward.
We also keep in close contact with the customer to ensure they’re able to stay on track with the agreed repayment strategies.
The team also ensure the customer is kept well informed so they understand what is required of them, and can plan accordingly.
Will you be selling the houses of people who can’t make their loan payments?
This is a last resort. Mortgagee sales are very rare and aren’t in the banks or customers interest, so we work with the customer to explore all other options.
If all other options fail, most home owners choose to sell their property to pay back their loan and protect their equity. The current housing market advantages the customer if they choose to sell their property.