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.