Butterfield Bank is to automatically defer all residential mortgage and personal loan payments for the next three months to help customers through financial difficulties caused by the Covid-19 crisis.
The bank will also introduce a three-month automatic payment deferral programme on all residential mortgages and personal loans in good standing, meaning customers will not be making principal and interest payments for the next three months and any penalties will be waived. This will assist customers who may be facing lower incomes or cash inflow at this time.
In addition, it will introduce a payment deferral on credit cards for two months beginning in May, meaning customers can skip May and June monthly payments without incurring any late fees.
This will assist customers who may be facing lower incomes or cash inflow at this time, the bank said in a press release.
We encourage anyone facing financial challenges to reach out to us so we can work on solutions together"
Mike McWatt, Butterfield's managing Director - Cayman, said: "The impact of the COVID-19 crisis on tourism and hospitality, and its knock-on effect on employment has been sudden and significant. We understand that the situation will make it difficult for some of our customers to service their outstanding debts. To make things easier for families and businesses, and to help the local economy recover more quickly post-crisis, Butterfield is taking these urgent, substantive steps to ease the financial pressures on customers in Cayman.
"We are working as quickly as possible to implement these changes, and we are here to support our customers throughout this crisis and beyond. We encourage anyone facing financial challenges to reach out to us so we can work on solutions together. We will continue to review these initiatives and will provide timely updates to customers."
Customer need to be aware, the bank said, that the measures will result in an extension of the loan terms as interest on the outstanding balance, that is payable during the deferral period when no loan or interest payments are made, will be added to the outstanding principal amount.
This means that a payment deferral will increase the amount of interest paid over the life of the loan.