I cannot pay my next mortgage payment because I have been affected by coronavirus. What can I do?
We have a dedicated team on hand to support you and they’ll be able to discuss the different payment options available to you for your residential mortgage.
One of the options available is a mortgage payment holiday, also known as deferring your monthly mortgage payment. If you take a mortgage payment holiday, this means that you wouldn’t make mortgage payments for up to three months and we’ll add these payments onto your mortgage balance. As a result, your mortgage balance will increase and your monthly payment will be recalculated over your remaining mortgage term. Your monthly payment and the amount of interest you pay will increase for the remaining term of your mortgage. There is no fee for taking a mortgage payment holiday.
If your mortgage is not in arrears, the mortgage payment holiday will not impact your credit rating, and you will not go into arrears on your mortgage.
If your mortgage is already in arrears, please speak to us about the options available to you.
Please be aware that if you pay by Direct Debit and your mortgage payment is due within the next 10 days, we will not be able to arrange the mortgage payment holiday for your next monthly payment. It will take effect from the following month.
I’m not struggling to pay my mortgage yet but am concerned that I might struggle to pay my mortgage over the next few weeks/months due to coronavirus. What shall I do?
If you’re able to make your monthly mortgage payments for the time being, please carry on doing so.
However, if you’re going to struggle to pay your mortgage as a result of coronavirus, you can apply by calling us on +44(0)1624 644 900. We ask that you only call us if you might not be able to make your mortgage payment in the next 10 days. Once we have reviewed your application, we will call you within 48 hours to notify you of our decision.
Be sure a payment holiday is for you
If you take a mortgage payment holiday you won’t make mortgage payments for up to 3 months. Anything you don’t pay will be added on to your mortgage balance. This means your mortgage balance and your monthly payment will increase and be recalculated over the rest of your term. There’s no fee for taking a mortgage payment holiday and it won’t have a negative effect on your credit score.
As an example, for a capital repayment mortgage of £100,000 over 25 years at a Standard Variable Rate of 4.49% interest, your monthly payment after a 3 month payment holiday will increase by £9.33.
We are here to help
We are always here to help, so if you have any queries please call our dedicated mortgage team on +44(0)1624 644 900. Lines are open 9am – 5pm UK time, Monday to Friday (except Wednesday when we open at 9.30am).