Please see our list of frequently asked questions for home loan customers, designed to help you navigate the financial assistance options that may be available to you.
FAQs for home loan customers
Facing hard times and becoming aware of a changing situation or increasing difficulty is the first important step that you can take.
Please take a moment to look at the existing features of your loan and the Government Assistance on offer, so you know what next steps you can take if your circumstances change in the future.
If your circumstances do change and you are unable to meet your loan repayments or pay for essentials such as groceries and bills, please apply for assistance here or contact us on 0800 945 658 to discuss your situation and the options which may be available to you.
We understand that the impacts of COVID-19 have been significant, and it is an extremely tough time for many people. If you notify us of your changing circumstances, we aim to work with you side by side to help you understand your options.
To do this, we will need to understand your unique situation to be able to consider your hardship request and discuss your options.
This may include asking you:
- The reasons why you are in financial hardship.
- An explanation of how and when your situation will improve
- Whether you can make any repayments to your loan and over what period
- To provide a statement of financial position, which sets out your income and expenses, as well as relevant supporting documents.
If you or another account holder are still employed and have reliable, ongoing sources of income, you should try to make your loan repayments as you are reasonably able to. However, given your financial situation will be changing and if you are unable to meet your loan payments at that time, please contact us to discuss your options.
In this situation, we will ask you to confirm a repayment amount that you can comfortably repay during the temporary reduction in your monthly repayments. You can apply for a reduction to your monthly repayments here or by contacting us on 0800 945 658 to discuss your situation and the options which may be available to you.
If your tenant is a day or two late with rent, your real estate agent or property manager should be helping you throughout this process. We recommend they have an open dialogue with your tenant, understand their situation, see what they can afford to pay and whether they have looked into financial assistance.
Depending on the circumstances, if you find that due to a decrease in your rental income you are unable to meet your home loan repayments please apply for financial assistance here, or contact us on 0800 945 658 to discuss your situation and the options which may be available to you.
Typically, a “repayment holiday” is a temporary suspension to your loan repayments because of temporary financial stress.
At Pepper Money, you can apply to us for either a reduction to your loan repayment amount for a set period or a repayment break which involves putting a pause on making scheduled repayments on your home loan for a set period of time.
If you have applied for assistance with Pepper Money and we agree to pause your repayments, your scheduled repayments will likely increase once the repayment break has ended to ensure that your loan is repaid within the remaining loan term.
Please take the time to read about the hardship process and repayment holiday terms here in our Fact Sheet.
If your income has been reduced temporarily, such as one spouse losing a job and leaving you with only one income, you may be able to apply for a temporary reduction in your scheduled repayments.
In this situation, we will ask you to confirm a repayment amount that you can comfortably repay during the temporary reduction in your scheduled repayments. You can apply for a reduction to your scheduled repayments here.
If you are experiencing any of the situations below, please apply for assistance here:
- You are unable to make your repayments
- You are finding it difficult to make your loan repayments
- Your financial situation will be changing, and you may be unable to meet your loan payments repayments at that time
- You have received a default notice from Pepper Money or another lender.
If you are eligible for financial assistance from Pepper Money, this will not negatively impact your credit history during this period.
If you miss a scheduled repayment during the period of financial assistance agreed with Pepper Money, your loan account will fall into arrears. If at the end of your period of financial assistance your loan account remains in arrears and you remain behind on your scheduled repayments, the outstanding amounts will be added back onto your loan balance, increasing the total loan amount you owe.
If you are experiencing financial difficulty right now as a result of losing your job, we encourage you to apply for assistance here or contact us on 0800 945 658 to discuss your situation and the options which may be available to you.
Please note that due to the unprecedented high volume of enquiries to our customer service centre, you may experience a longer response time than usual. We appreciate your patience during this busy time, and apologise for any inconvenience this may cause.
30 days before the end of your repayment holiday, Pepper Money will contact you to let you know that this arrangement is coming to an end and that your loan repayments will soon recommence. Learn more about the process here.
You may have the option of varying your all or part of loan account from principal and interest repayments to interest-only repayments for a specified period as agreed with us. This will reduce your repayments, as you don’t have to pay the principal of the loan for a specified period, only the interest portion.
It’s important to understand that the principal amount of your account isn’t being paid off during this period, so your monthly repayments will increase once your loan account converts back to principal and interest, in order to ensure that the remaining principal and interest balance is paid off over the remaining loan term.