What is a payment holiday?

A payment holiday offers you a break in payments on debts if you’re struggling to afford them.

If you’re worried about paying your mortgage or rent following the coronavirus outbreak, you could be entitled to a payment holiday of up to 3 months without it affecting your credit score.

If you're looking for information on how to change or cancel a regular overpayment to your mortgage, please visit our FAQs.

How do mortgage payment holidays work?

Mortgage payment holidays mean you can pause your payments for up to 3 months, so you don’t have to repay anything at all during that period. However, you still continue to accrue interest during this time, so you’ll end up paying more over the long term.

Who can apply for a mortgage payment holiday?

We want to provide help to everyone who needs it, and particularly those who need it most urgently. So we can do that, please only apply if:

  • you’ve been financially impacted, or expect to be financially impacted by coronavirus
  • you’re up to date with your repayments
  • everyone else named on the mortgage has agreed to applying for  a payment holiday
  • you want a payment holiday on all mortgage accounts that apply to the property you’ve given us details of in this form (please call us if this is not the case)
  • you’re aware that interest will continue to be charged during the payment holiday, that the total amount you owe us on your mortgage will increase and that your monthly payments may increase when the payment holiday comes to an end   

If your existing HSBC mortgage relates to a property in the Channel Islands or Isle of Man then please call us on 0345 600 6161.

If you're a landlord, you may also be eligible for a mortgage payment holiday if you have tenants who are unable to pay their rent.

Taking a mortgage payment holiday is only suitable for a short-term financial concern. Find more information about what to do if you have longer-term concerns over mortgage payments or if you’re already behind on payments here.

This application is for residential and Buy to Let mortgages. If your enquiry relates to a commercial property, you should call us on 0345 760 606.

What happens next?

You need to read all the following information before you complete and submit the form.

If you’re unable to make your next payment and this is due within 7 working days then please complete the form below and then call us on 0800 169 6333 and select option 0. If your next payment is outside of 7 days there is no need to call us.

Once you’ve submitted the form, we’ll process your payment holiday. We’ll send a letter to you (for each mortgage account) confirming this variation to your agreement with us for your mortgage.

Before the end of the payment holiday period, we will contact you to discuss your circumstances and agree a manageable way for you to repay the interest that has accrued and make up for the payments you won’t have made.

You aren’t required to make any mortgage payments during your 3-month payment holiday. Your credit file will not be impacted by this payment holiday.

If you have any overpayment arrangements in place, these will be cancelled and you should go online or call us at the end of your payment holiday if you would like them to be set up again.

What impact will the payment holiday have on my future monthly payments?

During the payment holiday, interest will continue to be charged on the balance of your mortgage on a daily basis at the rate(s) that apply to your mortgage and will be added to your outstanding balance. This means the total amount repayable by you over the mortgage term will be higher than it would otherwise have been.

The amount your payment will increase by will depend on the balance, mortgage term and interest rate of your mortgage agreement.

How can you apply for a mortgage payment holiday?

If you’ve read the above and want to arrange a mortgage payment holiday, you can fill out our simple online form by using the button below.

We’re really busy dealing with requests at the moment, but we’re aiming to get yours done within 7 working days. We’ll write to you to confirm we’ve done this and to tell you more. Please avoid calling us - we’ll be in touch.

Please note, to complete the form, you’ll need your mortgage sort code and account number.  You can find them on your mortgage statement or offer - or log onto online banking and look under My Accounts.

If the form doesn’t appear, this may be due to high usage. Please try again later. 

Will a mortgage payment holiday affect my credit score?

If you agree a payment holiday with us, we’ll record it to make sure it doesn’t impact your credit score.

How do rental payment holidays work?

If you’re a tenant and you think you may struggle to pay your rent in light of coronavirus, you need to speak to your landlord directly.

Emergency legislation introduced following the coronavirus outbreak means landlords won’t be able to start proceedings to evict tenants unless the tenant has missed more than 3 months of rent payments. This applies to private and social renters.