Mortgage payment breaks

Last updated 24 November 2020

We understand that coronavirus is creating challenging times, and you might be worried about money. A mortgage payment break may help.

What is a mortgage payment break?

If your tenant is struggling to pay their rent or you're struggling to make your monthly mortgage payments due to coronavirus, you can apply for a 3 month break.

You can apply to either:

  • take a full break from making your monthly mortgage payments, or
  • make reduced payments.

If you're a landlord, we encourage you to pass on any payment breaks to tenants in need of a rental holiday.

If you’ve already had 3 months of support and you need longer, you can apply for another 3 month break.

If you’ve already had 6 months of support, you can’t apply for another mortgage payment break.

Find out what you can do after your payment break ends

If you would like an estimate of the impact of a mortgage payment break then you may find this independently published mortgage payment break calculator useful.

You’ll be directed to an external website where you’ll get a representative illustration of what your future payments will look like. Your actual payments and what you will repay over the term of the mortgage may differ.

The impact of taking a mortgage payment break

Important: Before you take a mortgage payment break, think carefully about all your options. See the full range of options on our Coronavirus support page.

Future payments

If you’re thinking about a mortgage payment break, it’s important to understand that interest will continue to build  at your usual interest rate during the payment break.

This means that the total amount of interest you’ll pay over the term of your mortgage will go up, increasing the overall cost of your mortgage.

As a result, your monthly payments at the end of the break will be higher.

Your credit rating

Although a mortgage payment break won’t affect your credit rating, lenders may look at other information (for example, information provided by you, or bank account information) when they decide whether to lend to you in the future.

What you can't do during a payment break

  • Change your mortgage by adding or removing someone
  • Alter the length of your mortgage term, unless you are in the last month of your payment break
  • Change the way you repay your mortgage

Note: It will cost you more in the long term if you take a mortgage payment break. If you’re still able to make your mortgage payments, then you should continue to.

Applying for a mortgage payment break

Before you apply, you must have consent from everyone named on the mortgage.

To help you complete the application, please have information about your income and outgoings to hand.

There are different ways to apply for a payment break, so please read the options carefully:

  • If you've already taken a payment break and would like to apply for a new payment break, you can apply online.
  • If you’re currently up to date with mortgage payments and your mortgage is not held under a limited company, you can apply online.
  • If you’re currently behind on your mortgage payments AND/OR your mortgage is held under a limited company, you can apply by calling us on 0800 212 508. Our lines are open 9am to 5pm Monday to Friday, and 9am to 12pm on Saturdays. 

If you’re having problems on the system, you may need to update the browser version you’re using or try using a different browser. You can also try refreshing the page by holding down ‘CTRL’ and ‘F5’.

After your payment break ends

We’ll send a letter to you before your payments are due to restart. It will confirm the start month and the amount of your new payment.

Options for what to do next

Pay your new monthly payments

If you normally pay by Direct Debit, you don’t need to do anything. We’ll collect your new payment amount. If you cancelled your Direct Debit, you’ll need to set it up again. Remember, this usually takes 2 weeks, so make sure you give yourself enough time before your next payment date.

If you pay by standing order, you'll need to update this to your new payment amount before your payments are due to restart. Contact your bank or building society to do this. See our Making a payment to us page for more information.

Pay more than your new monthly payment

If your financial situation has improved, you could pay back the payments you’ve missed to minimise the effect on your monthly payments. This means you’ll pay less interest long term, but it will impact your overpayment allowance on your mortgage. Any Early Repayment Charges (ERCs) you get as a result of making up missed payments will be refunded.

If you were making overpayments before taking a payment break, you’ll need to set them up again.

Find out more about overpayments

If you’ve already had 6 months of payment support

Help is available if you still aren’t able to make your payments. The first step to working out a payment plan is to tell us more detail about your financial situation. That way, we’ll have the right information to call you to talk you through your options.

Please visit our Money worries page to see how we can support you.

See our Money Worries page

Cancelling a mortgage payment break

If you’re on a mortgage payment break and wish to cancel it, please contact our Mortgage Support on 0345 606 40 60.

More advice on mortgage payment breaks

For more advice on taking a mortgage payment break visit:

Mortgage Payment Holidays - Money Advice Service (opens in a new window)

A guide to dealing with financial difficulties during the coronavirus pandemic - Financial Conduct Authority (opens in a new window)

Coronavirus support - Money Advice Service (opens in a new window)

What debts to pay first - Step Change (opens in a new window)

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