How does a payment holiday work?

It’s a temporary break from paying your mortgage payment for up to three months, although interest will still be accrued on the outstanding balance. The total amount of interest you will pay over the term of the mortgage may increase.

When to take a payment holiday and over how long will depend on your individual circumstances.

If you are on a fixed rate product then the fixed period remains the same (i.e. it doesn’t extend for a further three months).

What are other options to help me?

  • If you are in credit with your mortgage, you may be able to reduce your payments for a period 
  • You may be able to change the way you make your payments or the date you pay 
  • We may agree a reduced payment for a period 
  • You could look to increase the term of your mortgage to reduce your monthly repayment amount.

The important bit...

Although we are not asking you to make any payments during this period you will still owe this amount. The missed payments will be included in the total mortgage balance and interest will continue to be charged on this balance. This will mean that your mortgage balance will increase.

During the payment holiday no arrears charges will be added to your account and we will not start any action for repossession of your home/property.

We will ensure that your credit file is not adversely affected by those missed payments which are solely due to impact of the Coronavirus outbreak.

At the end of the payment holiday your monthly payment will be recalculated so that you will repay the missed payments over the remaining term of the mortgage. This may mean that your new mortgage payment is higher than it is now. We will contact you nearer the time to tell you what your new monthly payment will be.

If you wish to resume mortgage payments, either partially or in full, at any time during the payment holiday to limit the impact on your mortgage balance and payments in the future please let us know by calling our payment support team on 0115 956 4670.

When will the payment holiday start?

Where possible, we’ll start the payment holiday from your next instalment. However, if your payment is due in the next 7-10 days, it may start from the following month.
  • If you have a Direct Debit in place, we will not collect any payments during the payment holiday. Please do not cancel your Direct Debit
  • If you pay by standing order you will need to stop this yourself by contacting your bank.
If you wish to proceed with the mortgage payment holiday:
  • Ensure you have read this information fully and that you keep a copy for future reference (download a copy)
  • Complete the declaration form on this page
  • Leave it with us to then put into place 
  • We will contact you by email to let you know it’s done - please do not send follow-up emails.

Our teams are working really hard supporting our members. Due to the high volume of requests the team are working through we are asking those applying for a mortgage payment holiday to wait for a response. 

We are prioritising requests by payment date so please do not cancel your direct debit before the payment holiday is agreed, as any missed payments outside of a payment holiday for coronavirus could have an impact on your credit score.

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Payment Holiday Declaration Form

Please fill in your details below. By submitting the form you agree that the information provided is correct to the best of your knowledge. Once received one of our team will contact you as soon as they can.