Coronavirus Mortgage payment holidays

If you’re concerned about making repayments on any residential or buy to let property as a result of the current coronavirus (COVID-19) situation, we’re here to support you.

If you have taken a mortgage payment holiday we will write to you when it is coming to an end.

What happens after a mortgage payment holiday?

What is a mortgage payment holiday?

It’s a period of time agreed with your lender where you can stop paying all or part of the payments on your mortgage.

It is important to note that as you are not making mortgage payments during this time, your balance will not reduce but your mortgage term will continue to reduce as normal. As no payments are being made, your mortgage balance will increase each month and additional interest charges will be incurred on a daily basis at your current mortgage interest rate. As a result, your monthly mortgage payments may increase once the payment holiday period has ended. We will write to you before the end of your payment holiday to confirm your new monthly payment amount.

Your credit file will not be affected from taking a payment holiday.

This is not the same as any payment holiday that may be available as a standard feature of your mortgage, which requires a surplus of mortgage payments (overpayments). Your Mortgage Offer will confirm if this type of payment holiday is available to you.

Is taking a mortgage payment holiday the right option for me?

If you’ve been financially impacted by the current coronavirus (COVID-19) situation, you can request a mortgage payment holiday of up to three months.

However, here are some things you might want to consider to make sure it’s right for your current needs:

  • This is a ‘temporary break’ from making mortgage payments, your monthly payments will be recalculated and may increase to ensure the outstanding mortgage balance is repaid over the term of the mortgage.
  • The most appropriate time for you to take a mortgage payment holiday will depend on your individual circumstances. If you’re unsure about the potential financial impact of your situation, there’s still time to consider your options. Please contact us if you would like to discuss alternative options that may be available to you.

If you are still currently working and able to maintain your full monthly mortgage payments, you should continue to do so.

If your circumstances change, you can get in touch with us and we can review your options.

How do I request a mortgage payment holiday?

We’ve set up a dedicated email PaymentHolidayRequests@skipton.co.uk for customers to request a mortgage payment holiday of up to 3 months.

If you've already taken a mortgage payment holiday, please don't use this email address to request an extension. Instead, see our What happens after a mortgage payment holiday page to find out about the options available when your payment holiday ends.

By emailing us, you are confirming that you have all of your co-borrowers’ consents to this payment holiday request. In the email please make sure that you provide:

  • your mortgage account number
  • how long you wish the payment holiday to be for – 1, 2 or 3 months
  • the best number for us to contact you on, if we need to.

It is important to include your account number as this will avoid delays in processing your request. If you don’t have your account number, please include your address and postcode.

Once we’ve received your email, we’ll be in touch to either confirm your request or to discuss your individual circumstances further.

If your next mortgage payment is due in the next 7 working days, your payment holiday may not start until the following month and this will be confirmed in our response.

As you can imagine we’re extremely busy processing requests, so please bear with us and avoid calling to check on progress. If you've emailed the above email address please rest assured that we have your request and you’ll hear from us soon.

In the meantime, leave your Direct Debit in place if you have sufficient funds to cover your regular monthly payment. Once the holiday is approved we will temporarily suspend your Direct Debit. You can also make a payment by bank transfer using our bank details.

What happens after my mortgage payment holiday?

If you have a mortgage payment holiday in place, we'll recalculate your monthly payment in the final month and will write to let you know what your new monthly payment will be. You'll also have some options to choose from if you want to minimise the change to your monthly payment, or if you're worried you won't be able to afford to restart your payments.

You can find more detail on our What happens after a mortgage payment holiday page, but please bear in mind that things might change and we can't look at specific options with you until your payment holiday is coming to an end.

Frequently Asked Questions

If you would like an approximate calculation of the impact of a mortgage payment holiday then you may find the Money Super Market - taking a mortgage payment holiday calculator useful.

Skipton in no way endorses the content or policies of any third party website. Skipton will not accept any liability for any claim as a result of the content or activity of any third party website.

We’re advising customers to pay what they can today, and we’ll be in touch as soon as possible to talk about their circumstances in more detail and discuss what support is available.

You can make a payment by bank transfer using our bank details, which you can find here. If you have made a payment by bank payment then please inform us before your Direct Debit collection date so that we can ensure the Direct Debit does not attempt to collect funds.

No, we will temporarily suspend collection from your bank account. If you cancel your Direct Debit your interest rate may increase by 0.25% as you will lose the discount for having a Direct Debit in place.

If you have cancelled your Direct Debit a cancellation letter will be issued in the post. This will include a Direct Debit mandate to complete and return to us. Alternatively, a Direct Debit mandate can be found here. We can accept the signed Direct Debit Mandate via email to creditmanagement@skipton.co.uk. You should return this mandate at least two weeks before your payments are due to recommence.

If you have voluntarily overpaid on your mortgage and built up a credit amount and feel you are now experiencing difficulties, you may be able to use this credit to take a formal payment holiday. Please refer to your Mortgage Offer for further information.

Once your request for a mortgage payment holiday has been confirmed, no payments need to be made for up to 3 months. During this time, your mortgage balance will increase each month and additional interest charges will be incurred on a daily basis at your current mortgage interest rate. If you are currently paying by Direct Debit, we will not collect a payment so please do not cancel this.

Before your payment holiday ends, we’ll recalculate your monthly payments and let you know the new amount before your next payment is due. It’s likely to be higher than what you’re currently paying as your mortgage balance will have increased and the term will have reduced.

No, your credit file will not be affected from taking a payment holiday with Skipton Building Society.

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