Mortgage repayment holidays offered for flood victims

Following weeks of flooding and storm damage, three major banks are offering mortgage repayment holidays and other help to those affected.

After weeks of storms and flooding, around 1,000 homes have been flooded near the Thames, as well as flooding in the Somerset Levels which has lasted for several weeks. In an attempt to ease the burden on those affected, RBS, Santander and HSBC are offering mortgage repayment holidays for those whose homes have been damaged.

RBS, who also own Natwest, have said that they will also send specialist business support teams to affected areas, to help small businesses with the short term financial issues they are facing. This comes after they announced that they would implement a £250 million UK Storm Business Fund last month. In addition, they are raising their ATM withdrawal limit from £300 to £500.

Santander has said it will offer repayment holidays or repayments on an interest-only basis, which will be considered individually.Loan agreements for farmers will be extended for up to twelve months, with six month extensions for small businesses. It will also allow customer overdraft extensions without renewal or extension fees.

Ana Botín, chief executive of Santander UK, said:

“We are already working with our customers to find personalised solutions that can help alleviate any financial stress caused by the recent floods, to allow them to concentrate on what matters right now.”

This news comes as thousands of homeowners and small businesses attempt to recover their premises and possessions from the wreckage - with more storms set to come.