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.
What is the maximum amount of time I can have a mortgage payment holiday for?
You’re able to apply for a 3 month payment holiday. Once that payment holiday ends, we’ll get in touch by letter to explain your options. As long as you don’t make a regular monthly payment, you’ll be eligible to apply for a payment holiday extension of up to 3 months. The total payment holiday duration can be a maximum of 6 months total.