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Frequently asked questions

Why were new payment holidays only available until 31 March 2021?

This was in response to guidance provided by the Financial Conduct Authority.

Although new payments holidays aren’t available after 31 March 2021, if you’re currently on a payment holiday you may be able to request an extension before your monthly payments are due to resume – we’ll contact you about your options.

After this date, there’s still support available which will be tailored to your individual circumstances, but these solutions may impact your credit file.

I have a joint mortgage, but can’t speak to the other account holder. Can I still call for help?

You can – you just need to call us.

How long will it take you to process my request for a mortgage payment holiday extension?

We aim to process all requests within 3 days.

I have a payment due soon and haven’t heard from HSBC since submitting my application, what should I do?

If you have a mortgage payment due in the next 7 working days, please call us.

I want to end my payment holiday early. What should I do?

To bring your mortgage payment holiday to an end before it expires, please call us.

Why has my mortgage balance increased since the start of the payment holiday?

The interest that has accrued over your payment holiday has been added to your mortgage balance.

How has my mortgage term been calculated?

Your mortgage term hasn’t changed, or been recalculated. The change to your monthly payments will mean your mortgage is repaid by the same date. 

What is capitalisation?

We have continued to calculate and charge interest on your mortgage balance during your payment holiday. This interest has been added to your mortgage balance. This is capitalisation.

Is my balance the same as a redemption quote?

No – the balance doesn’t include any accruing interest and charges that may apply when redeeming your mortgage.

If I have made payments to my mortgage during the payment holiday, will this show in the balance?

Yes, providing these payments were made before the date shown on the letter. All figures shown in the letter are correct as of the date the letter was created.

Why is the total amount payable higher than my balance?

Your total amount payable includes your current balance and the interest payable on your mortgage. It doesn’t take into account any future overpayments you may make, or rate changes. So, the total amount payable is what you’ll repay between the date of your payment holiday ending and the end of your mortgage term, assuming that you make no other changes.

How and when can I take a mortgage payment holiday?

The guidance provided by the FCA states that:

The maximum payment holiday you’re allowed is 6 months in total, but 3 months is the most you can take at any one time.

From 1 April 2021, you can only apply for another payment holiday if you have taken less than 6 months payment holiday in total and it’ll follow on directly from your current one. This means you can’t make a monthly payment after your current payment holiday, then apply for another.

All payment holidays must finish by 31 July 2021. To use all 6 months available, you must have started your first payment holiday before your February 2021 payment. If you took your first payment holiday after February 2021, your maximum payment holiday allowance will be less than 6 months.

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