Further support after a mortgage payment holiday (deferral)

If you were up to date with your mortgage payments when you requested a mortgage payment holiday (also known as a payment deferral) and want to extend the payment holiday (deferral) you already have in place, or you are worried you won't be able to afford your new monthly payments, you'll need to complete a Personal Budget Form so that we can work with you to find the most suitable option.

Things to consider

Once we receive your completed Personal Budget Form, we will look at your individual circumstances and suggest what we think is the best option for you. One of the options could be extending the payment holiday (deferral) for a longer period. In case this is the option we agree is best for you, there are some things you need to be aware of.

Impact of extending the payment holiday (deferral)

If the best option based on our review of your circumstances is to extend your mortgage payment holiday (deferral), it’s important to remember that this is a Deferred Payment or Partial Deferred payment which means you would be deferring some or all of your mortgage payments for a set amount of time. You still owe these payments, interest will continue to be charged throughout this time and will still need to be paid at a later date.

Please note that the figures included in these examples are for illustrative purposes only and are designed to give a general indication of additional costs that could occur if a payment holiday (deferral) is taken.

Repayment Mortgage

Current outstanding mortgage balance £100,000
Interest rate 2.50%
Term remaining (years) 20
Current monthly payment £529.90
New monthly payment after a three month payment holiday (deferral) £538.43
Monthly increase £8.53
Total amount to repay without payment holiday (deferral) £127,177.00
Total amount to repay with three month payment holiday (deferral) £127,607.91
Total increase in amount repaid over the mortgage term £430.91

Interest Only Mortgage

Current outstanding mortgage balance £100,000
Interest rate 2.50%
Term remaining (years) 20
Current monthly payment £208.33
New monthly payment after a three month payment holiday (deferral) £209.64
Monthly increase £1.31
Total amount to repay without payment holiday (deferral) £150,023.00
Total amount to repay with three month payment holiday (deferral) £150,333.54
Total increase in amount repaid over the mortgage term £310.54

Payment holiday (deferral) impact calculator

Please note that online calculators are intended to give an illustration of what your new monthly payment might be, they are not 100% accurate to your individual circumstances and do not reflect what your actual payment will be.

Impact calculator

You can visit The Money Advice Service to find impartial advice and guidance all about payment deferrals.

They also offer the Money Navigator Tool which can take a look at your individual circumstances to provide personalised guidance and highlight areas where you should consider taking action now to avoid money problems in the future.

What other support can we offer?

Extending the payment holiday (deferral) is not the only option that is available from Skipton, there are other options we can consider. These might include:

  • converting some or all the mortgage balance to Interest Only on a temporary basis,
  • extending the term of your whole mortgage either temporarily or permanently,
  • accepting reduced payments in the short term which can be caught up at a later date.

When you send us your Personal Budget Form, we will consider all the possible ways we can help you and suggest what we think is the most suitable for your individual circumstances.

How to request further support or extend the payment holiday (deferral)

  1. Complete a Personal Budget Form
  2. If you think you can afford part of your payment but not all of it, please detail on the form how much you propose to pay and for how long.

  3. We'll review your budget form and contact you within 14 days to discuss the most suitable options for your circumstances. In the meantime, please pay what you can and we won't charge any Arrears Fees during this period.

Personal Budget Form

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