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Payment Holidays

As the impact of coronavirus is felt across the UK, you may be worried about how it could affect you and your home. Your peace of mind is still our top priority, so we've created some extra ways to help, if you need it.

If the coronavirus has affected your income, you may wish to take a mortgage payment holiday. You can ask to take a break of up to a maximum of three months.

What is a payment holiday?

A payment holiday is when you temporarily stop paying all or part of your monthly mortgage payment.

It can help if you have any short term or unexpected changes to your situation, such as maternity or paternity leave, changes to your employment, or unexpected household or car costs.

If you take a mortgage payment holiday, this means that you wouldn't make mortgage payments for up to three months and we'll add these payments onto your mortgage balance. As a result, your mortgage balance will increase and your monthly payment will be recalculated over your remaining mortgage term. Your monthly payment and the amount of interest you pay will increase for the remaining term of your mortgage.

If you've made overpayments in the past 12 months, you could ask to underpay for a while, rather than take a payment holiday. You'll need to call us before you underpay.

Can I take a payment holiday?

You can apply for a payment holiday if:

  • you have a joint mortgage, everyone agrees to the payment holiday.
  • your mortgage payments are up to date.

If your mortgage account is in arrears, we have other ways of helping you. Please visit our financial difficulty page to find out more.

How will this impact my future mortage payments?

At the end of the payment holiday, we'll recalculate your monthly payments and the amount you owe will go up. That's because even though you miss payments due to the payment holiday, we will still add interest to your mortgage.

An example of how this would change based on taking a repayment holiday for two months:

Current outstanding mortgage balance

£100,000

Interest rate

2.75%

Term remaining

20 years (repayment mortgage)

Current monthly payment

£541.84

New monthly payment after payment holiday

£548

Monthly increase

£6.16

How do I apply for a payment holiday?

We're currently dealing with a much higher number of phone calls than usual, so you may find it quickest to ask for a payment holiday by using our online form. It only takes 2 minutes to complete it.

We will then respond back within 3-5 working days via text message to confirm if your payment holiday request has been accepted.

Request a payment holiday

Remember that if you take a payment holiday the amount you owe will go up.

If you don't qualify for a payment holiday but are worried about making your mortgage payments then please call us on 0345 300 2627. We're open Monday-Friday: 8am-8pm Sat: 9am-4pm.

We have a number of ways of helping you if you are having trouble paying your mortgage.

For telephone line opening times, please read the information in our contact section. Calls may be monitored and recorded for security and training purposes.

Our tracker rate mortgages are linked to Bank of England Bank Rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England website or in the Financial Times or other leading newspapers.

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