OneSavings Bank grants payment holidays to 26.7% of mortgage book

Jessica Bird

May 7, 2020

extension of mortgage payment holidays

Specialist lending and retail savings group OneSavings Bank has granted payment holidays to 26.7% of its mortgage book by value. 

As at the end of April 2020, the group had granted mortgage payment holidays to approximately 24,000 accounts.

OneSavings Bank has reported that the volume of requests was particularly high when the scheme was first announced, but has since reduced significantly.

Of the requests for payment holidays among buy-to-let landlords, 12% to 15% were due to tenants ceasing to pay rent.

The bank also reported that it is continuing to support existing and new customers by accepting valuations, but is operating with a tightened criteria for loan-to-value ratios (LTVs) and loan sizes, to remain within its risk appetite and meet valuer criteria for enhanced desktop valuations while physical options are unavailable.

Andy Golding, CEO of OneSavings Bank, said: “I am extremely proud of the resilience that OSB has demonstrated in the current difficult conditions.

“Our customers are at the heart of everything we do and we have concentrated on delivering the continuity and quality of service they expect of us.

“We entered the crisis with exceptionally strong capital and liquidity positions which allowed us to rapidly assist those concerned about potential financial difficulty by offering payment holidays on a self-certified basis.

“We demonstrated our flexibility by redeploying our employees to meet the large increase in call volumes.

“We started the year with a strong pipeline of new business and continue to lend to new and existing customers, prudently and with a reduced suite of products.

“We have enhanced our underwriting to accept desktop valuations due to the inability to perform physical valuations at present.

“The UK and global economies continue to experience unprecedented uncertainty stemming from COVID-19.

“It is too soon to say what the longer term impact will be on our business, but we entered this period with a strong and secured balance sheet, sensible LTVs and strong risk management capabilities equipping us well to navigate the current situation.

“I would like to finish by taking the opportunity to thank all of my colleagues for their resilience, dedication, support and hard work which have allowed us to continue to provide our customers with the quality service they expect through these difficult times.”

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