Coronavirus mortgage payment holiday

Coronavirus is creating difficult times for many and you may be worried about money. We’re here to support you.

What is a mortgage holiday payment?

If you think you’ll struggle to make your monthly mortgage payments because of coronavirus, we can help by offering you a payment holiday of up to three months.

This is a short break from paying your mortgage, where the monthly payment changes to zero, but interest continues to accrue. You won’t need to complete any assessment of your financial circumstances and it won’t affect your credit rating.

You can apply for a payment holiday if;

  • you'll struggle to meet your usual repayments due to being impacted by coronavirus
  • you have consent from everyone named on your mortgage
  • you’re up to date with your monthly payments (if you’re already behind on your mortgage payments please call us on 0345 600 2882).

The above criteria also applies to landlords with residential Buy-to-Let mortgages.

Is a payment holiday the right option for me?

A payment holiday is a temporary break from your repayments to help you through these uncertain times.

There are a few things to consider before applying for a payment holiday, to make sure it’s right for your situation:

  • The interest on your mortgage will continue to accrue during the payment holiday.
  • If you have a fixed rate mortgage, there will be no change to your fixed payments after the payment holiday. If you move on to a reversionary rate after your fixed rate period ends, then these payments will be higher than shown in your original mortgage agreement.
  • If you have a variable rate mortgage, like a base rate tracker or if you are on standard variable rate, then the outstanding amount from your payment holiday will be added to your mortgage and the repayments after the mortgage holiday period will increase as a result.
  • Towards the end of the payment holiday, we will contact you to confirm that your payment holiday is ending and agree next steps. We will also discuss other options for repayment of the outstanding amount from your payment holiday.

Please be aware that if you need independent support regarding your mortgage, you can get help from Citizens Advice, Housing Rights NI or other debt counselling agencies.

What happens once I apply?

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. We are experiencing a high volume of requests, so it might take up to three working days to mark the payment holiday to your account. If your payment is due in the next few days and you will have difficulty making it, please contact us on 0345 600 2882.

We’ll confirm the details when we write to you confirming your payment holiday.

Please ensure that you read all of the information on this page so that you fully understand the implications of agreeing changes to your mortgage before submitting an application to us. If you require any further information or would like to speak to someone, please contact us 0345 600 2882

Apply for a mortgage payment holiday

FAQs

  • What is a payment holiday?

    A payment holiday is where your mortgage repayment is put on hold for up to three months. The monthly payment changes to zero, and interest continues to accrue during this period. This option is particularly helpful where there is a temporary shortfall of income.

    Following the payment holiday you will need to make up these repayments in the future, which could be over the remaining term of the mortgage.

  • Who is eligible for the industry agreement announced by the Chancellor?

    The payment holiday will apply to residential customers (customers who own and live in their own home) who are up to date on their payments, not in arrears, and wanting to self-certify that they are impacted by coronavirus.

    The same eligibility criteria will also apply to residential Buy-to-Let customers (customers who rent properties to tenants) whose tenants have lost income due to being impacted by coronavirus. Buy-to-let customers are expected to pass this relief onto their tenants.

  • What should I do if I am not eligible for the industry agreement announced by the Chancellor?

    If you don’t meet the criteria, we may still be able to assist you. Please call us to discuss your options.

  • What evidence of my income and outgoings do I need to provide?

    We understand that this is a very challenging time and we want to support you through this. Don’t worry if you don’t have evidence of your new or expected financials due to coronavirus, we don’t need this to provide your payment holiday where you are eligible for the industry agreement as announced by the Chancellor.

    Before the payment holiday period expires, we’ll contact you to complete a full income and expenditure review, and assessment of alternate payment options before we agree the next steps.

  • What will happen to my future payments after the holiday?  Will I have to pay more than I do now?

    Yes. The interest on your mortgage will continue to accrue and will be added to the mortgage after the payment holiday- this will mean you’ll pay more over the lifetime of the mortgage.

    • The interest on your mortgage will continue to accrue during the payment holiday.
    • If you have a fixed rate mortgage, there will be no change to your fixed payments after the payment holiday. If you move on to a reversionary rate after your fixed rate period ends, then these payments will be higher than shown in your original mortgage agreement.
    • If you have a variable rate mortgage, like a base rate tracker or if you are on standard variable rate, then the interest accrued will be added to your mortgage and the repayments after the mortgage holiday period will increase as a result.

    Taking a payment holiday won’t affect your credit score where you have been financially impacted by coronavirus.

  • What other options do I have if I don’t want a payment holiday?

    If a payment holiday isn’t right for you there are other options available:

    With a Capital Moratorium you’ll pay interest only payments for a period of up to six months, meaning you won’t be contributing to the capital. This would reduce your mortgage commitment each month, but allow you to continue to pay the interest portion of your mortgage.

    Or you can make partial repayments instead of taking a payment holiday.

    To discuss these options please contact us on 0345 600 2882 to make an appointment with one of our advisors to assess the right option for you.