The government have this morning, 8 February, confirmed some changes to the Bounce Back Loan repayments under the ‘Pay As You Grow’ scheme (PAYG).
In addition to the support measures announced last year of the 6 month interest-only repayment terms, and the option to extend loan repayment periods from 6 to 10 years, the Chancellor has today announced an additional 6 month repayment holiday, which borrowers can choose to use from the start of the repayment period – essentially delaying the start of repayments of Bounce Back Loans by 18 months from the original loan date.
In summary, the following support is available to borrowers under the Bounce Back Loan Scheme:
- Repayment Holidays: in addition to the initial 12 month repayment free term from the loan start, an additional 6 month payment break is also available, which borrowers can choose to use from the start of the term, in effect meaning an 18 month delay in total to the start of repayments.
- Lengthening the loan term: this can be extended from 6 months to 10 years
- 6 month ‘interest only’ repayment periods: borrowers can opt to repay only the interest on their Bounce Back Loan, these interest only breaks can be used up to 3 times throughout the loan period.
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