Coronavirus: Mortgage payment holidayWe understand that Coronavirus (COVID-19) is creating challenging times and you may be worried about money.
What is a mortgage payment holiday?
If you think you'll struggle to make your monthly mortgage payments because of Coronavirus, we can help you by offering a 3-month payment holiday.
A mortgage payment holiday is a break from paying your mortgage. It won’t affect your credit rating, so there’s one less thing to worry about.
Can I apply for a mortgage payment holiday?
You can apply for a mortgage payment holiday if:
- Your finances have been affected by Coronavirus.
- You have consent from everyone named on the mortgage.
Is a mortgage payment holiday the right option for me?
It’s important to remember that a mortgage holiday is a temporary break from your mortgage payments, to help you through these uncertain times.
There are a few things to consider before applying for a mortgage payment holiday, to make sure it’s right for your situation:
- At this time, our coronavirus payment holiday can be offered for a maximum of 3 months.
- The most appropriate time for you to take out a mortgage payment holiday will depend on your individual circumstances. If you’re not yet sure how much the current situation will impact your finances, or if you’ll be able to keep paying your mortgage, there’s still time to consider the best option for you.
- When your payments start again after the payment holiday, they’ll be recalculated and may increase, as a result of the previous payments due being added to your mortgage balance.
- The total amount of interest you pay over the term of the mortgage will increase.
We remain committed to supporting our customers impacted by coronavirus, and will continue to review our offer of mortgage payment holidays in line with government and regulatory guidelines. Check back here for updates to our coronavirus mortgage payment holiday.
If you’re not struggling because of coronavirus, and you’re still able to make your mortgage payments, then you should continue to do so.
Other options to a payment holiday you could consider
You may want to consider switching your existing deal if you’re eligible to, as this may be more suitable for your situation.
If you need longer term support, or you’re worried about starting your payments again in 3 months’ time, see our money worries page.
What impact will a payment holiday have on my future monthly payments?
When your payments start again after the payment holiday they’ll be recalculated, and you may see an increase in your monthly payments.
Interest will continue to build at your usual interest rate during the payment holiday and the total amount of interest you pay over the term of the mortgage will increase.
This will result in a slightly higher mortgage balance than if you’d not taken out a holiday. We’ll need to recalculate your payments over your remaining term, taking this increase into account.
The amount your payment will increase by depends on your mortgage balance, mortgage term and interest rate.
What happens when my mortgage payment holiday ends?
When your 3-month payment holiday ends, we’ll write to you to let you know your recalculated monthly payment. If you feel you need further support to get back on track with your mortgage payments after your payment holiday, a number of options will be available through our Home Support Package. We’ll be in touch about how to access these further options - no need to contact us.
Applying for a payment holiday
Due to extremely high volumes of applications right now, it will take us longer to get back to you.
Please don’t call us for an update, this allows us to focus on getting your requests actioned as quickly as possible.
Once the payment holiday has been applied to your account, we’ll write to you confirming when your payment holiday will start.
Where we can, we’ll start your payment holiday from your next payment. However, if your next payment is due in the next few days, your payment holiday may start the following month.
Due to extremely high volumes of applications right now, it will take us longer than usual to get back to you.
Do not cancel your Direct Debit - Keeping it set up makes restarting payments much easier after your payment holiday.
Please bear with us and avoid calling in to check on progress. Rest assured we have your application and you’ll hear from us soon.
There are different ways to apply for a payment holiday, depending on if you’re currently up to date with your mortgage payments or not, or if your mortgage is held under a limited company:
- If you’re currently up to date with mortgage payments and your mortgage is not held under a limited company, you can apply for a payment holiday on our online application form.
- If you’re currently behind on your mortgage payments AND/OR your mortgage is held under a limited company, you can see how to apply for a payment holiday on our payment holiday webpage.
Other questions you might have
When will my payments restart? This will reveal additional content
Do I need to cancel my direct debit? This will reveal additional content
Will you require any proof that my finances have been impacted by coronavirus? This will reveal additional content
If I’m currently making overpayments, what will happen when my payment restarts? This will reveal additional content
Can payment holidays be extended? This will reveal additional content
Can I switch my product when I am on a payment holiday? This will reveal additional content
Can I still apply if I’m already behind on my mortgage payments? This will reveal additional content
Do the 3 months have to be taken consecutively? This will reveal additional content
What if I can’t afford the new payments after the holiday period has ended? This will reveal additional content
I’ve taken out a payment holiday but no longer need it. Can I cancel? This will reveal additional content