Connect with us

Hi, what are you looking for?

Editor’s Pick

NatWest provides debt extension for those struggling with borrowing repayments

Struggling NatWest borrowers have been given an extra six months to pay back unsecured loans and overdrafts.

The part state-owned bank said it has “not yet” seen “significant” increases in the number of defaults or people in arrears but said the measure is designed to act as a support to communities.

As a result of the extension, from early next month, NatWest customers who have missed several payments will have 24 months to repay, an increase from 18 months.

Government had urged banks to do more to support customers.

Chancellor Jeremy Hunt met major mortgage lenders last month to issue a warning and, subsequently, a range of forbearance measures were reported to have been agreed late in December.

Policies used during the financial crash are said to be among the tools being deployed to aid consumers struggling with debt, including moving mortgage holders to interest-only deals and moving them to fixed-rate deals, the Financial Times reported.

People earning least have been most impacted by inflation and more than a million of the bank’s 19 million customers now spend more than 10% of their income on fuel or more than 30% on groceries, or both, the lender said.

NatWest also said it was increasing to £5.7m its donations to charities and groups that provide debt advice and access
to affordable credit.

But the measure is less than the forbearance package offered during the pandemic when customers were offered payment holidays.

The taxpayer holds a 48.5% stake in NatWest after it was bailed out by the state during the global financial crash. It was only in June of this year that the state ceased to be the majority shareholder after it sold part of its shareholding.

The Bank of England has forecast “significant pressure” will be placed on the ability of households to meet their debts.

“The risk that indebted households will default on loans, or sharply reduce their spending, has increased,” the Bank’s latest Financial Stability Report said.

More than 1.4 million fixed-rate mortgage customers are facing significant hikes to monthly payments when deals end this year, according to the Office for National Statistics. It said 57% of fixed-rate mortgages coming up for renewal in 2023 were fixed at interest rates below 2%.

Consumers have been experiencing hardship as the UK has gone through double-digit inflation and recorded the second largest fall in real wage growth since records began, meaning an effective pay cut for workers.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!


Editor’s Pick

<?xml encoding=”utf-8″ ??> Aspect is the well-known property maintenance company in London that is recognised for its signature yellow and blue vans, which are...

Editor’s Pick

<?xml encoding=”utf-8″ ??> The Wakelet Microsoft 365 Children’s Parliament backed by The Express, is proud to announce that James Caan CBE, the former Chairman...


THE TOWERING BUILDINGS of Makati’s central business district are seen in the background in this May 13, 2020 file photo. — PHILIPPINE STAR/ MIGUEL...


A Philippines peso note is seen in this illustration on June 2, 2017. — REUTERS THE PHILIPPINES could benefit from the proposed Maharlika Investment...


PASSENGERS queue before the check-in counters at the Ninoy Aquino International Airport (NAIA) Terminal 3 after flights were canceled due to technical issues on...


By Arjay L. Balinbin, Senior Reporter METRO PACIFIC Investment Corp. (MPIC) expects to generate P500 million in revenue from its dairy business by 2025,...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.