Repaying your Bounce Back Loan (BBL)

Pay As You Grow: The Pay As You Grow options are available to all customers from 3 months before their first repayment date and will be available throughout the life of your loan. There’s no need to call us, we’ll email all customers 3 months before their first repayment date to let you know when you’re able to opt in.

PAYG Video

When will my Bounce Back Loan repayments start?

You received a payment holiday for the first year of your loan, with the interest being paid for by the government through a Business Interruption Payment.  After the first 12 months, you’ll need to start making monthly repayments to repay the amount you borrowed, plus interest from the date your repayment holiday ends. 

We’ll automatically collect your repayments using the payment details set up when you opened your loan. If your payment details have since changed, please let us know.

You’ll pay less if you pay back early

If you no longer need the loan, you can choose to pay it back early. You’ll then pay less interest. There are no early repayment charges and you won’t pay any interest if you pay the full amount before the end of your initial 12-month repayment holiday.

Or you can make a one-off repayment of any amount towards the loan, as well as additional payments on a regular basis, and doing so will also help save you money on your interest payments.

Your Pay As You Grow repayment options

The Government has announced Pay As You Grow options for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan.

Pay As You Grow options will be available to you from 3 months before your first repayment date.

Using these options won’t affect your credit score, or negatively affect your credit file. We may use requests for Pay As You Grow options to help us assess affordability in future lending applications, for example we will take into consideration incomings and outgoings, including existing debt repayments such as the Bounce Back Loan, and also your total debt exposure, which will include the outstanding Bounce Back Loan.

The Pay As You Grow options (that will be made available to you 3 months before your first repayment date) are as follows:

1. If you expect to be in a better position to repay in the future:

​​a. You could reduce your monthly repayments for 6 months by paying interest only.

​​​​Illustrative example:

  • On a loan of £50,000 this would reduce monthly payments from £936.49 to approximately £106.16 during the six-month period.
  • You’ll pay more interest overall, so the total amount repayable on a £50,000 loan would increase from £54,431.60 to £55,056.94, unless you repay early.
  • You’ll have the choice to extend your loan term for an additional six months if you take this option but regardless, your interest costs will increase. If you retain your original loan term a larger amount of your loan is outstanding for longer and if you wish to extend your loan term by 6 months, you're repaying your loan over a longer period.
  • This option is available up to three times during the term of your Bounce Back Loan.

Take a look at what repayments might look like for each of the Pay as you Grow repayment options. 

Or

b. You could take a payment holiday for 6 months

Illustrative example:

  • You’ll make no capital repayments or interest payments during this time.
  • The total amount you owe will go up. This is because your interest costs will increase as interest accrues during the payment holiday and so the total amount repayable on a £50,000 loan would increase from £54,431.60  to £55,100.49, unless you repay early. You’ll have the choice to extend your loan term for an additional six months if you take this option but regardless, the total amount you owe will go up. If you retain your original loan term a larger amount of your loan is outstanding for longer and if you wish to extend your loan term by 6 months, you're repaying your loan over a longer period.
  • This option is available once during the term of your Bounce Back Loan.

Take a look at what repayments might look like for each of the Pay as you Grow repayment options. 

2. If you’re only able to repay a smaller amount each month:

You could request an extension of your loan term from 6 years to 10 years at the same interest rate of 2.5%*.

Illustrative example:

  • Extending your loan term to 10 years would reduce your first repayment (at month 13) on a loan balance of £50,000 from £939.49 to £569.12 (these figures comprise capital plus interest).
  • You’ll accrue more interest, so the total amount repayable on a £50,000 loan (capital plus interest) would increase from £54,431.60  to £56,933,31, unless you repay early.

*If you’re considering this option, you should think carefully about your ability to repay over a longer timeframe, taking into account such things as if you intend to cease trading or retire within the revised term of your Bounce Back Loan. 

Take a look at what repayments might look like for each of the Pay as you Grow repayment options. 

You can use options 1 and 2 together if you need to. Both options 1a and 1b will be available throughout the course of your loan term.

Please note for all three options the amount of interest you will pay will increase as a result of selecting one or more of the Pay As You Grow options.

The Pay As You Grow options won’t be available to customers until 3 months before your first repayment date. We’ll contact you to let you know when your first repayment date is approaching and how you can opt in. 

For more information on how to apply for Pay As You Grow, please view our  ‘Choose a Pay As You Grow option’ section at the bottom of this page.

Important information

The examples for options 1a and 1b above assume that a customer will choose to extend their loan term for an additional 6 months. This would mean that their total loan term would be 6 years and 6 months. 

The illustrative examples are based on each PAYG option being taken individually, and assume the option is taken before the first repayment date is due. The figures in the examples above have been calculated and based on a £50,000 loan with an original drawdown date of 06/05/2020, so your repayment amount may be different due to the specific date you’ve taken out your loan. Please note that the illustrative examples are solely for information purposes only, offered as a guide to how your repayments could be impacted by taking one of the PAYG options.  They are not meant to be relied upon as giving you an accurate representation of what your own repayments will be.

We’re here to help

We’ll be in touch before your first repayment date to let you know more about Pay As You Grow and how to opt in. However, if you’re worried about your finances in the meantime, here are some support options for you to consider.

You can visit our Survive and Revive hub to find a range of support including:

  •  toolkits to help you market your business
  •  e-commerce packages to get you trading online 
  •  a series of business support webinars on a variety of topics to help guide you through these uncertain times 

Our Independent help and support page gives details of organisations that you could contact for free debt advice, either personally or for your business. 

Other business support:

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.  

Contact us:

If you don’t believe any of the PAYG options or above support can help you (including if your business has permanently ceased trading), and you’d still like to speak to us, please contact either your Santander UK relationship team or Commercial Direct on 0800 077 8850.

If you have, or about to enter insolvency,  please call us on  0800 077 8850. Lines are open Monday to Friday, 9.30am to 1.00 pm and 2.00 pm to 4.00 pm.

Choose a Pay As You Grow option

How do I choose a Pay As You Grow (PAYG) repayment option?

Log on to Connect Online Banking to choose your options. If you’re not registered or have forgotten your details, you can find information on our support page

If you want your Pay As You Grow option to take effect for your next repayment date, make sure you choose your option more than 5 working days before your next Direct Debit is due.

Make sure you’ve read the information and illustrative examples on this page. Then log on to Online Banking and:

  1. On ‘Account Information’, click the ‘Pay as you Grow’ tab  on the left-hand side at the  bottom.
  2. The second screen will show you details for your Bounce Back Loan. Click the red ‘Pay as you Grow options’ button at the bottom of the screen on the right-hand side. Remember, you’ll only be able to choose Pay As You Grow options from 3 months before your first repayment date. If the options are greyed out, that means you  can’t choose them yet, and we’ll contact you when you can.
  3. Now you can choose which PAYG option you’d like to use. You can choose to pay interest only for 6 months, take payment holiday or extend your loan term. You’ll be able to see how your chosen option will affect your repayments before you confirm your selection.

Please remember that once you’ve chosen your PAYG option and clicked ‘confirm’, you won’t be able to change it.

We’ll send you a confirmation letter in the post.

How soon will my Pay As You Grow option be applied?

Your Pay As You Grow option will take effect from your next repayment date as long as you choose your option more than 5 working days before your next repayment is due. 

If you choose your option within 5 working days of your next repayment date, your repayment will be taken as scheduled and your Pay As You Grow option will be applied from the next month.

Choosing more than one Pay As You Grow option

If you’d like to use more than one PAYG option, you’ll need to submit each request individually. You’ll need to wait 2 working days after submitting your original request before you’ll be able to choose another PAYG option.

If you have chosen one of the payment holiday options (either paying interest only for 6 months or taking a payment holiday for 6 months), and you would like to choose another one of these options when your current holiday ends, you must do this when you’re within 30 days of your current payment holiday ending.

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