Top of main content

Mortgage payment holiday next steps

What will happen at the end of my mortgage payment holiday?

We’ll write to you before your payment holiday ends to let you know what your new monthly payments will be.

You may find your monthly payments will increase after your payment holiday. That’s because:

  • interest has continued to accrue and been added to your outstanding mortgage balance during your payment holiday; and
  • there will be fewer months of your mortgage term remaining for you to repay your balance 

If you’re happy to accept the revised monthly payments detailed in your letter, you don’t need to do anything.

What if I want to extend my payment holiday?

The Financial Conduct Authority (FCA) has just finished consulting on updated guidance in relation to mortgages. We'll update our website once the new guidance is issued.

This may include extending your payment holiday by another 3 months or making partial payments for 3 months. However, the options available may depend on your personal circumstances.

There are no further details at this stage, but we’ll contact you before the end of your payment holiday to explain your options.

What if I want to review my new payments?

If you’d like to make up your payments in a different way, or are concerned about making the new payments, there may be some alternative options. The options available will depend on your personal circumstances. Keep in mind, some options could increase the total interest payable, or have an impact on your credit file.

To find out more, please follow these steps:

  1. Select the statement below that best applies to you
  2. Review the available options
  3. If you wish to explore any of these options, please follow the next steps as soon as possible to ensure any changes are effective before your next payment is due 

I'd like to reduce my payments, so they're similar to what they were before my payment holiday

1. Extend your mortgage term by up to 6 months

You may be able to extend the term of your mortgage by up to 6 months. This could help reduce your payments so they’re closer to what they were before you took your payment holiday.

If you’d like to consider a longer-term extension, please refer to option 3 below.

To discuss this opinion further, please call us on 0800 169 6333 and select opition 0.

Lines open Monday to Saturday 8am - 8pm, Sunday 9am - 6pm.

2. Make a lump sum overpayment

If you have funds available, you could make a lump sum overpayment on your mortgage.

The letter that you will receive will confirm the amount of interest that has accrued during your payment holiday period.

By paying this amount as a lump sum, you’ll reduce the balance of your mortgage. This could reduce your monthly mortgage payments back to a similar amount that you were paying before your payment holiday.

You can call us on 0800 169 6333 to discuss making a lump sum overpayment. We’ll be able to tell you what effect it would have on your monthly payments. We can then arrange this for you if you want to go ahead.

Lines open Monday to Saturday 8am - 8pm, Sunday 9am - 6pm.

I need to reduce my payments, so they’re lower than they were before my payment holiday

3. Apply to extend the term of your mortgage for longer than 6 months

If you have a capital repayment mortgage (rather than interest only), extending the term of your mortgage and repaying it over a longer period of time would reduce your monthly mortgage payments.

4. Temporary Interest Only

If you have a capital repayment mortgage, and are unable to meet your monthly mortgage payments in the short term, you may be able to change to interest only payments for up to 6 months.

During this period, the monthly payments collected would only cover interest. This means that your mortgage balance wouldn’t be reducing and the total amount repayable would be higher in the long run.

To see if a temporary change to interest only is possible, we’ll need to talk through your circumstances and get you to complete an income and expenditure form.

To book an appointment, please call us on 0800 169 6333 and select option 0.

Lines open Monday to Saturday 8am - 8pm, Sunday 9am - 6pm.

I’m worried about being able to make mortgage payments and need ongoing help

If you don’t think you’ll be able to afford your next, and future payments and need more support, please call us on 0345 850 0633.

Lines open Monday - Friday 08:00 - 18:00, Saturday 08:00 - 16:00.

It’s easy to get in touch online. Talk to us directly through our chat channels.