Updated at 00:01am on Thursday 1st April 2021

Mortgage payment holidays

We're unable to accept any new applications for mortgage payment holidays, as the Government has now closed the scheme. If you think you might have problems making your mortgage payments, visit our worried about your finances page.

After your mortgage payment holiday ends

You'll receive a letter to let you know your mortgage payment holiday has ended. It will confirm your new monthly mortgage payment and when this is due.

How did we calculate your new monthly mortgage payment?

Although payments are suspended during your mortgage payment holiday, interest is still charged on your mortgage balance. We'll recalculate your monthly payments to make sure your loan is paid off in the time left on your mortgage.

Comfortable with your new monthly payments?

If you can afford your new monthly mortgage payment, then all you need to do is start making payments from the date shown. Unless you've cancelled your Direct Debit, payments will start automatically.

However, if you've cancelled your Direct Debit, you'll need to set this up again. You can do this by completing and sending us the Direct Debit Mandate or by calling us free on 0800 072 8738.

If you paid in any other way before your mortgage payment holiday, you need to re-start in the same way or set up a Direct Debit for your new monthly payments. Find more details about how to make mortgage payments.

If your account was in arrears before your mortgage payment holiday, we'll be in touch to discuss repayments that are affordable to you.

Which other options are available to me?

If you're facing difficulties with your finances

We have a dedicated page for further support. You'll find more information on budgeting, details on what support we can provide and a list of organisations you can contact for free debt advice.

Used less than six months' mortgage payment holiday?

If you've used less than six months' mortgage payment holiday, you have a number of options.

Check you're on the best mortgage for you

If you're currently on our Standard Variable Rate, there may be a lower rate deal available that you can switch to. Find out more about remortgaging.

Use any overpayments you've made

If you've previously made overpayments on your mortgage, and would like to talk to someone about using this to reduce your monthly mortgage payments, call us free on 0800 072 9739. Please continue to make your payments as normal until you have spoken to us.

Extend the term of your mortgage

This offers a longer-term option if you can afford to pay a similar amount to your old mortgage payment. Please bear in mind it will cost more over the term of your mortgage, when compared to making your new monthly payments. Find more information on extending the term of your mortgage.

Full and part extensions to your mortgage payment holiday

The mortgage payment holiday scheme ends on 31 July 2021

  • All mortgage payment holidays or extensions will be subject to the maximum six-month total and cannot extend past 31 July 2021.
  • After 31 March 2021, any mortgage payment holiday extension must immediately follow the end of your original mortgage payment holiday, with no break in between.
  • If you've made a payment since the end of your mortgage payment holiday, and think you might have problems making future payments, visit our worried about your finances page.

It's important to remember that throughout your mortgage payment holiday, interest will continue to build up at the rate shown on your account. This means you'll pay additional interest over the term of your mortgage.

For an example of how your monthly mortgage payments could change, please visit the online calculator at MortgageHoliday.co.uk. This could help you decide whether a mortgage payment holiday is right for you. If you then decide to apply for a mortgage payment holiday, you'll need to use it again.

If your account is in arrears, any payments we receive will be used to clear these up first. If you don't make any payments during your mortgage payment holiday, arrears will remain unchanged.

Before you use the calculator

You'll need some basic information such as your:

  • loan balance.
  • remaining mortgage term.
  • interest rate.

You can find all of these on your annual mortgage statement.

Please bear in mind that when you use the online calculator, it will make calculations based on the same rate of interest across your whole mortgage. However, this won't apply if your mortgage is made up of different types of loan with different rates of interest - for example, if you've taken out additional borrowing, or part of your mortgage is Interest Only. If this is the case, you'll need to contact us on the details shown below.

Take a look at some examples of how a mortgage payment holiday affects monthly payments and the overall total cost.

If you're able to make any mortgage payments during your mortgage payment holiday, you should. This is a ‘partial mortgage payment holiday', and it'll help reduce the overall cost of your mortgage in the long term.

Before taking steps to extend your mortgage payment holiday, it's important to:


  • Wait until you've received a letter confirming the end of your current mortgage payment holiday. Have this letter and your annual mortgage statement to hand as they will help you with the online calculator that's part of the application process.
  • Complete our budget planner, which will help you work out your income and expenditure as well as identify your priority debts.
  • Make sure you have consent from everyone named on the mortgage.

To request a full or partial mortgage payment holiday extension

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Use our online form if you pay by Direct Debit and:

  • - You were up to date with your mortgage before your mortgage payment holiday, or
  • - You were less than one month in arrears before your mortgage payment holiday.
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Call us free on 0800 072 8738 if:

  • - You don't pay by Direct Debit or
  • - Your mortgage is made up of more than one part. (For example, part repayment part interest only, or you've taken additional borrowing on your mortgage). Or,
  • - You'd like to talk to someone before you take out a mortgage payment holiday, or
  • - You've taken less than three months' mortgage payment holiday.

Call us free on 0800 072 9739 if:

  • - You were over one month in arrears before your mortgage payment holiday.

Mortgage payment holidays and your credit file: Taking a mortgage payment holiday in these circumstances won't have a negative impact on your credit file. However, bear in mind that some lenders may take into account other information when making future lending decisions. For example, this could include details provided by applicants or bank account information.

Concerned about your future income?

If you're worried about a longer-term loss of income and your ability to make your mortgage payments, please call us free on 0800 072 9739. We'll work through your options, including looking at a mortgage payment holiday extension.

Still unsure?

If you're still unsure which option is right for you, please call us free on 0800 072 9739 to talk things through.

Minimising the change to your monthly mortgage payments

If you want to minimise the change to your monthly mortgage payments, you have several options to consider.

Make a lump sum payment

By making a lump sum payment to cover some or all of your mortgage payment holiday, you'll reduce the amount of interest you have to pay. In the unlikely event this payment comes with an early redemption charge, please contact us and we'll arrange for it to be refunded.

Find out how to make a lump sum payment. Please bear in mind that although making a lump sum payment will reduce the overall interest amount, it won't always mean your monthly payment is recalculated straight away. For example, if you're on annual review or if the lump sum payment is less than £1,000.

If you want to talk to someone about the difference a lump sum can make - or would like to request a recalculation for your monthly payment - call us free on 0800 072 8738.

Make overpayments

You can make overpayments in addition to your usual monthly payment. They can repay the cost of all or part of your mortgage payment holiday. This will reduce the additional amount of interest you have to pay over the length of your mortgage.

To make an overpayment, you can use our secure automated payment line, call us on 03300 081 604 - open 24 hours a day.

Check you're on the best mortgage for you

If you're currently on our Standard Variable Rate, there may be a lower rate deal available that you can switch to. Find out more about remortgaging.

Extend the term of your mortgage

You can extend the term of your mortgage for the same amount of time as your mortgage payment holiday ran for.

Please bear in mind, this is a long-term option. It'll reduce your monthly payments, but it'll cost more over the length of your mortgage compared to making your new monthly payments. If you can afford to, sticking to your new monthly mortgage payment is more cost efficient than extending the term.

If your mortgage is Interest Only, you won't be able to extend your mortgage term. This is because your monthly payments aren't affected by the length of the mortgage.

How extending your mortgage term affects monthly payments

The example below shows what happens when a mortgage term is extended by the same length as a mortgage payment holiday. You can see how this affects both monthly payments and the overall cost of your mortgage. Whilst monthly payments remain similar to before the mortgage holiday, the total amount payable increases.

You have 10 years left on your mortgage with a balance of £100,000. You're on a fixed five year rate of 1.88%, followed by our Standard Variable Rate of 5.29%:


  • If you didn't extend your mortgage term after taking a three month mortgage payment holiday, your monthly payment would increase from £914.14 to £939.83. The total amount you repay would be £114,773.31, an increase of £400.71 in interest.
  • However, if you did decide to extend your mortgage term by three months, your new monthly mortgage payment would broadly be in line with your old payment at £918.42. The total amount you repay would be £115,338.60, an increase of £966.00 in interest.

The figures are meant as a guide only. They may vary due to individual circumstances and mortgage products taken out during the life of your mortgage. See some other term extension examples.

If you're considering applying for a term extension

It's important to wait until you've received a letter confirming the end of your mortgage payment holiday. This will show your new monthly mortgage payment and help you understand your options.

To apply for a term extension

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If you pay by Direct Debit and are:

  • - Up to date with your mortgage, or
  • - Less than one month in arrears

You can apply using our online form.

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If you don't pay by Direct Debit and:

  • - Your term extension will take you into retirement, or
  • - You have a Shared Ownership or Shared Equity mortgage

Please call us free on 0800 072 8738 to discuss your term extension request.

If you're currently over one month in arrears:

Then call us free on 0800 072 9739 so we can review the options open to you.

Still unsure?

If you're still unsure which option is right for you, please call us free on 0800 072 9739 to talk things through.