What is forbearance in the UK?

Forbearance describes the temporary arrangements a lender can offer a borrower who is in, or heading towards, financial difficulty. Rather than moving straight to recovery action, the lender adjusts the terms for a period so the borrower has room to recover. Common measures include reducing payments, pausing them for a short time, extending the term, or agreeing a structured catch-up plan for arrears.

What forbearance can look like

There is no single form of forbearance. Depending on the situation a lender might agree a short payment holiday, accept interest-only payments for a defined window, reschedule the remaining balance over a longer period, or freeze further charges while a repayment plan is put in place. The aim is to find a workable path that reflects what the borrower can realistically afford.

Forbearance and treating borrowers fairly

Forbearance is closely tied to the principle of treating borrowers fairly and dealing sympathetically and positively with those facing difficulty. Good practice involves listening to the borrower's circumstances, considering reasonable options, and not pressing for payments the borrower clearly cannot make. It is a tool for supporting recovery, not for postponing an inevitable problem.

Forbearance in business lending

Credicorp lends to UK limited companies and limited liability partnerships rather than to consumers, so the consumer protection rules are not all engaged. Even so, we believe a good lender pairs the cost of credit with genuine support. If a business hits a difficult period, the right response is to talk early, set out the options honestly, and agree an arrangement that gives the company a realistic chance to get back on track.

What forbearance is not

Forbearance does not cancel a debt. The borrower still owes the money, and the arrangement is usually temporary and subject to review. It is a way of managing repayment through a difficult patch, not a write-off, and the original obligation remains in place once the agreed period ends.

Common questions about forbearance in the UK

What is forbearance in UK business lending?

Forbearance is a temporary arrangement a lender agrees with a borrower who is in, or approaching, financial difficulty. Rather than moving straight to recovery or default, the lender adjusts repayment terms — for example by reducing payments, pausing them for a period, or extending the term — so the business has room to recover. It is a structured, time-limited arrangement, not a permanent change.

Does forbearance cancel the debt?

No. Forbearance adjusts the way a debt is repaid but does not cancel it. The amount owed remains in place; the lender is simply agreeing a different schedule for repayment through the difficult period. Once the agreed window ends, the original obligation — or a rescheduled version of it — resumes.

How do I ask Credicorp for forbearance?

Contact us as early as possible through our Help Centre. The sooner a difficulty is flagged, the more options are available. We review each situation individually and aim to agree a workable arrangement that reflects what the business can realistically afford, rather than pressing for payments it cannot make.

Related / See also

See arrears, default, vulnerable customer, payment holiday and responsible lending. If your business is heading into difficulty, the most effective step is to contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/.

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