(CMR) Butterfield Bank has announced today that effective March 23 they will be lowering personal and mortgage rates. Additionally, they will be introducing a three-month automatic payment deferral program on all residential mortgages and personal loans that are in good standing. Customers will not be making any principle or interest payments during that time and all penalties will be waived.
They have detailed these temporary assistance measures in light of the financial difficulties posed by the COVID-19 health crisis around the world.
Furthermore, they will also 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. Business customers with remaining loan principle of up to $2 million who are facing difficulties can pay interest only on their next three monthly loan payments with no penalties. Business clients with loans in excess of $2 million should contact their personal relationship managers to discuss their available options.
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.”
Customers covered by these arrangements should understand that interest on the outstanding balance at the contractual interest rate, payable during the payment deferral period (where no loan or interest payments are being made) will be added to the outstanding principal and will result in an extension of loan terms.
Therefore, the total amount of interest paid over the lifetime of the loan will increase as a result of payment deferral. Those customers who wish to maintain their current payment schedules and amounts should contact their relationship managers or the Bank’s loans department on (345) 949 7055.
As the situation evolves, Butterfield continues to review and adjust its COVID-19 response. Details regarding the Bank’s current health, safety, and operational measures are available on the Bank’s website, www.butterfieldgroup.com.