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.