Mortgage payment holidays

Coronavirus (COVID-19)
Are you coming to the end of your mortgage payment holiday?
We will write to you in due course to explain the next steps. In the meantime, read our Q&A to find out more about what happens when your payment holiday ends.

If you are experiencing difficulty with mortgage payments as a result of coronavirus, you can apply online for a payment holiday of up to three months. This includes both residential and commercial customers.

It's quick and easy to apply for a mortgage payment holiday. No need to call us or visit a branch, simply complete our online form and we'll process your request as soon as possible. If we need to contact you regarding the form we will do so. We will confirm the payment holiday to you in writing.

Once your payment holiday is agreed we will stop collecting your mortgage payments from your bank account. If you are paying by standing order you will need to tell your bank to stop paying this.

Once the payment holiday is over we will recommence collection of payments from bank accounts. If you are paying by standing order you will need to talk to your bank to start payments again.

What you need to know

  • You should contact the Department of Work & Pensions to find out if there is benefit income or other government support that you can claim.
  • If you have unsecured loans, credit cards or other commitments, you should contact the provider, Citizens Advice Bureau or a free debt advice service to see if reduced payment arrangements can be made.
  • You should contact us immediately to advise us of any changes in your financial circumstances that would enable you to make increased or full mortgage payments.
  • It is in your interest to make payments to your account to avoid your mortgage balance increasing further.
  • Interest is payable on the outstanding balance of your mortgage, and if the full mortgage payment is not being made your mortgage balance will increase each month.
  • Where your full mortgage payment is not being made for an agreed period, the payment shortfall will accrue as arrears.
  • Reduced monthly payments or a payment holiday will increase the total amount you repay over the life of the mortgage, and cost you more interest as a result.
  • When this payment concession ends, we will ask you for your proposals for the repayment of the arrears which have accrued. This could include increased monthly payments or extending the term of your mortgage. If a concession extends your mortgage term past normal retirement age, you should consider the financial implications of this and we recommend that you obtain legal and financial advice.
Apply for a mortgage payment holiday

Q&A

  • How do ‘payment holidays’ work?

    During a payment holiday we will not collect your monthly payment. However, interest will continue to accrue on your mortgage balance. Where repayments are deferred for a time, you will need to make up these repayments in the future, which could be over the remaining term.

  • How do I apply for a payment holiday?

    We will gather a limited amount of essential information from each customer to be able to make a decision on the best way to support customers in as timely and straightforward a way as possible.

    Simply complete our online form and we will get back to you as soon as possible. If we need to contact you regarding the form we will do so. We will confirm the payment holiday to you in writing.

    If your enquiry is urgent, you can call our customer care team on 01228 403141, but please bear in mind that we are receiving a high number of calls regarding payment holidays, so thank you for your patience.

  • Are all customers eligible for a payment holiday?

    No, this is one of a number of options that lenders can offer. The offer of a payment holiday can be made available to customers’ not already in arrears and up to date with payments. Under Financial Conduct Authority (FCA) rules, lenders must ensure that any forbearance offered enables recovery through full repayment of arrears, minimises the long-term impact of arrears, and that the mortgage remains affordable and sustainable. Overall, forbearance needs to minimise the risk of possession. This is why payment holidays are generally short-term.

    For customers who are already in arrears or in financial difficulty, we will consider the full suite of forbearance options that are ordinarily available to customers under existing rules. We will look at customers’ individual circumstances and offer support on a case-by-case basis.  We are ready and able to offer support, we would encourage customers to contact us at the earliest possible opportunity to discuss the options available to them.

    We will help customers in the most appropriate way, but an automatic payment holiday may not always be the most suitable approach and may not be required by all customers.

  • What will happen at the end of the payment holiday?

    We will write to you in due course to explain the next steps. In the meantime, read our Q&A to find out more about what happens when your payment holiday ends.

  • But lenders are only offering a short-term measure – what about customers who may be likely to need support longer term or help to recover to their previous position after the payment holiday expires?

    We will assess your circumstances, including reviewing your income and expenditure, and if appropriate and we are able to do so, we may be able to agree a further period of forbearance or other measures to support you for a longer period of time.

    However, as we have mentioned above, in response to the question “How do ‘payment holidays’ work", interest on your mortgage will continue to accrue during any payment holiday or forbearance measures, therefore any measures allowed will increase the total amount you repay on your mortgage making it more expensive in the long term.

  • How will this affect my credit score?

    Arrears that are accrued due to Coronavirus payment arrangements will not be reported to the Credit Reference Agencies.

  • What if I don’t own my property but rent instead?

    You should contact your landlord or managing agent if you have problems paying your rent. If you are a landlord and your tenants are unable to pay their rent you should contact us as soon as possible to discuss the options that may be open to you.

  • What if I’m already in arrears?

    You should continue to speak to us and we will review existing arrangements if there is a change in circumstances.