Coronavirus (COVID-19) – Mortgage Payment Holidays (also known as payment deferrals)

Before you apply for a mortgage payment holiday (deferral), whether it’s a further payment holiday or for the first time or it’s the first time it’s really important you understand the impact of a payment holiday on your future payments and what it will mean for your mortgage.

Call us and we can provide you with an estimated illustration.

0808 156 1158*
9am - 5pm Mon-Fri
9am - 1pm Sat

Or you can use the calculator within the online mortgage payment request form. Please remember the figures we show you are based on some assumptions, such as you having only one interest rate on your mortgage. If your mortgage has multiple parts, the calculator will assume all the parts have the same interest rate and term as well as repayment type. You can check your interest rate and remaining time to pay (term) on your latest mortgage statement or checking your mortgage account online. When you make your calculation, make sure you use:

• The highest interest rate you’re paying
• The shortest term you have left
• Tick the repayment type with the highest balance (if part Interest Only and part Repayment)

Please be aware that this illustration does not include any mortgage payment protection insurance premiums collected with your mortgage payment. If you would like us to help you with the illustration, call us on

0808 156 1158*
9am - 5pm Mon-Fri
9am - 1pm Sat

The figure the calculator will give you is based on the accuracy of the information you provide.

Examples of mortgage repayments after taking a mortgage payment holiday (deferral):

Outstanding mortgage amount: £50,000 Outstanding mortgage amount: £150,000 Outstanding mortgage amount: £210,000

You don’t need to provide any documentation; you will just need to self-certify that your income has been either directly or indirectly impacted by Covid-19.

The unpaid interest from your payment holiday will still be recovered later, but individual credit ratings will not be affected. However, it’s important to know that credit files aren’t the only source of information which lenders can use to assess creditworthiness.

If your mortgage is a buy to let and we agree a payment holiday (deferral) with you because your tenant is unable to pay the rent then the benefit of the payment holiday should be passed onto the tenant.

If any of your mortgage account is interest only repayment, you need to be aware that these balances will increase to cover the amount of accrued interest that has been added due to the missed payments.

For the interest only elements of your mortgage the recalculated monthly payments will continue to only pay off the interest and will not reduce your increased outstanding balance. It is important, therefore, to check regularly that your savings plan and other investment plans that you may have in place is on track to repay your mortgage at the end of its term.

If you have taken a mortgage payment holiday (deferral), we will send you a letter in the post which will describe all the options available to you.

We will send your letter a month before your payment holiday is due to end, but allowing for any postal delays, we would expect the letter to arrive 15 days before your next payment is due.

To make sure our contact centre colleagues can speak to those who need our help the most, please don’t phone us unless you have not received a letter and your payment holiday is due to end within the next two weeks.

The letter will confirm:

• Your mortgage payment holiday end date
• Your new monthly payment and how it has been calculated
• Your expected mortgage balance at the end of the payment holiday

It will outline what next steps you can take, including what to do if your employment status has changed if you think you might have difficulty making your next payment. It will also tell you what you can do if you feel a payment holiday wasn’t the best option for you and you would like to pay back the missed payments by a different means.

It’s in your best interests to start making mortgage payments again, as soon as you can afford to.

We’ve also listed all the phone numbers you’ll need to make sure you speak to the right person.

You will still owe the money where a payment holiday (deferral) was been granted and interest will still accrue, so if you are able to make part of your normal mortgage payment to reduce the money you owe or your interest charges then you should consider doing so.

At the end of the payment holiday we will recalculate your monthly payment based on your outstanding mortgage balance and remaining term. It is very likely your payments will increase, particularly if you have a shorter term left on your mortgage.

Yes, providing your account wasn’t in arrears prior to the holiday (deferral) and you meet our usual criteria, we can arrange a product transfer for you.

No, providing your account wasn’t in arrears before the holiday (deferral) and isn’t in arrears after the holiday and you meet our usual product transfer criteria, you’ll be able to go ahead with the transfer.