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Loan Holiday

Bank appear to be refusing a commercial loan holiday....anyone else seen this?

Didn't find your answer?

We have cleints who have asked Lloyds for a holiday on their commercial loan/mortgage due to the coronavirus.

The reaction to date seems to be that as it's a fixed rate this is not possible but they're offering an overdraft facility with no set up fee

Does this refusal seem correct? What difference does the fixed rate make given all loans would be recaluclated after the holiday period? Has anybody else faced this with Lloyds?

Replies (6)

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RLI
By lionofludesch
25th Mar 2020 18:32

Not my understanding of HMG's reassurances.

But it's all new, isn't it ?

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By SXGuy
25th Mar 2020 19:50

Oh you mean offer an overdraft where by chance all banks have raised the interest to around 40%? Of course they are!

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Psycho
By Wilson Philips
25th Mar 2020 21:18

My experience doesn’t bear that out - two clients very quickly agreed 6 month capital holidays (RBS and Handelsbanken). Interest will still be payable when due but fortunately in both cases the loans are nearing end of term.

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By rjshaul
26th Mar 2020 09:49

I had exactly the same experience yesterday. I was with a client who waited 90 minutes to get through to Lloyds to ask for a three month capital holiday on borrowings for a professional practice. They are repaying the loan over 5 years so capital is substantial and they have a very good record, client 30+ years etc. They said no there's no facility for this. I don't know if this is bank policy or if it was just that the person was inexperienced and could only offer the government backed loan, which he did. Time to change banks.

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Replying to rjshaul:
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By bosclibby
26th Mar 2020 09:52

Sounds like it could be a Lloyds thing - no facility for this is pretty well what our clients were told too. Not good.

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By rjshaul
26th Mar 2020 09:49

I had exactly the same experience yesterday. I was with a client who waited 90 minutes to get through to Lloyds to ask for a three month capital holiday on borrowings for a professional practice. They are repaying the loan over 5 years so capital is substantial and they have a very good record, client 30+ years etc. They said no there's no facility for this. I don't know if this is bank policy or if it was just that the person was inexperienced and could only offer the government backed loan, which he did. Time to change banks.

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