Glossary
Hardship variation
A formal change to your loan (reduced payments, a payment pause, or a longer term) that you can ask your lender for when unexpected hardship hits.
By Leverage Finance · Updated 17 July 2026
If illness, job loss, or another unforeseen event means you can't keep up with repayments, the CCCFA gives you the right to apply to your lender for a hardship variation. The lender must consider it properly. It isn't a favour; it's a legal process, and it exists precisely so a rough patch doesn't have to become a default.
Hardship and refinancing solve different problems. A hardship variation is for a temporary crisis on your existing loan. A refinance is for a loan that's permanently mispriced or mis-shaped for your life. If you're currently in arrears, most lenders will want to see the situation stabilised before assessing a new loan. So hardship first, refinance later is usually the order.
Our guide to hardship options covers the process step by step.
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