Coronavirus (COVID-19) – Repayment Holidays

Latest update on mortgage payment holidays 02.06.2020

You may have seen the FCA has released guidance for lenders on further support around mortgage payment holidays for those who have been impacted financially by coronavirus. We are working through what this means for our customers and will update our website and FAQs as soon as possible.

If you already have a payment holiday please do not use the payment holiday form to request an extension. If your new payment is due within the next two weeks please call us.

Find out more on our coronavirus information page

Taking a mortgage repayment holiday

If you are able to maintain your mortgage payments, you should continue to do so. However, if you have been financially impacted by COVID19 and this is impacting your ability to meet your monthly mortgage payment, then you are able to request a payment holiday up to a maximum of 3 months as long as you are currently up to date with your mortgage repayments without any impact on your credit file. If you are currently in arrears, please contact us to discuss alternative solutions.

If you choose to take a payment holiday you need to be aware that the interest usually charged within your monthly payments will be added to the balance of the mortgage. Your account will be re-calculated at the end of the instalment break and written confirmation will be provided. The payment will be calculated at that time using your higher balance and spread throughout the remaining term. It is very likely your monthly payments will increase.

If you have elements of your mortgage account on interest only you need to be aware that these balances will increase to cover the amount of accrued interest that has been added due to the missed payments.

For the interest only elements of your mortgage the recalculated monthly payments will continue to only pay off the interest and will not reduce your increased outstanding balance. It is important, therefore, to check regularly that your savings plan and other investment plan that you may have in place is on track to repay this mortgage at the end of its term.

By requesting a payment holiday, you are confirming:

  • You have been financially impacted by COVID19
  • You want to proceed with the payment holiday
  • You will be able to start to repay your mortgage once the payment holiday ends.

If your mortgage is a buy to let and we agree a payment holiday with you because your tenant is unable to pay the rent then the benefit of the payment holiday should be passed onto the tenant.

If you hold more than one account with us, please contact us.

Although Payment Holidays can help in the short term, if you have a repayment mortgage at the time of the payment holiday the interest will continue to be added to your mortgage and the missed payments will need to be made up over the remainder of the mortgage term, meaning that your contractual monthly payment will increase.

You may be eligible to apply for a Payment Holiday if:

  • Your mortgage payments are up to date
  • You have been directly or indirectly impacted by Covid-19

If your account is in arrears, you may be eligible but we would need to talk to you to assess this.

Although we try to help as many customers as possible, there will be some cases where a payment holiday may not be available to you.