If you’re worried about paying your mortgage during the coronavirus outbreak, a payment holiday allows you to stop your payments for up to 3 months without affecting your credit score.
You don’t have to repay anything at all during the repayment holiday.
If you're looking for information on how to change or cancel a regular overpayment to your mortgage, please visit our FAQs.
What impact will this have on my future mortgage payments?
During the payment holiday we’ll continue to charge daily interest on the balance of your mortgage at the applicable rate. We’ll add this interest to your outstanding balance. This means the total amount repayable over the remaining mortgage term will be higher than it would otherwise have been. After the payment holiday has ended, the monthly amount you pay may be higher. The increase will depend on the balance, mortgage term and interest rate of your mortgage agreement.
Who can apply for a mortgage payment holiday?
We want to provide help to everyone who needs it, and particularly those who need it most urgently. So we can do that, please only apply if:
- you have an existing HSBC mortgage
- you’ve been financially impacted, or expect to be financially impacted by coronavirus
- everyone else named on the mortgage has agreed to applying for a payment holiday
- you’re aware that interest will continue to be charged during the payment holiday, that the total amount you owe us on your mortgage will increase and that your monthly payments may increase when the payment holiday comes to an end
If you're a landlord, you may also be eligible for a mortgage payment holiday if you have tenants who are unable to pay their rent.
Taking a mortgage payment holiday is only suitable for a short-term financial concern. Find out more about what to do if you have longer-term concerns over mortgage payments.
How can I apply for a mortgage payment holiday?
What happens next?
What happens when your payment holiday ends?
You don’t need to do anything at the moment, so there’s no need to contact us. We’ll write to you before your payment holiday ends and explain what your new payments will be.
If you have already taken a mortgage payment holiday and will be unable to make these new payments, you’ll be able to apply to extend your payment holiday for up to a further 3 months, or to make partial monthly payments.
If you can afford to make your full monthly payment once your payment holiday ends, or are able to afford partial monthly payments, we encourage you to do so as this could reduce your overall borrowing over the term of the mortgage. Taking a payment holiday extension will mean that interest will continue to accrue and be added to your loan balance, further increasing your future monthly payments, the total cost of borrowing and additional interest payable.
The Financial Conduct Authority has just revised its guidance in relation to mortgages and coronavirus, please keep checking this page for updates.
Frequently Asked Questions
I have a joint mortgage but can’t speak to the other account holder. Can I still apply for a payment holiday?
You can still apply but will need to call us on 0800 169 6333 and select option 0.
Will a mortgage payment holiday affect my credit score?
If you agree a payment holiday with us, we’ll record it to make sure it doesn’t impact your credit file. However, lenders can use other sources to assess credit worthiness.
How do rental payment holidays work?
If you’re a tenant and you think you may struggle to pay your rent in light of coronavirus, you need to speak to your landlord directly.
Emergency legislation introduced following the coronavirus outbreak means landlords won’t be able to start proceedings to evict tenants unless the tenant has missed more than 3 months of rent payments. This applies to private and social renters.
What about home insurance payments?
If you’re an HSBC Home Insurance customer and you meet the eligibility criteria, you can ask to defer your monthly payment and spread it evenly over the remaining term of your policy. You can apply to defer one month’s payment deferral at a time for a maximum of three months.
How long will it take you to process my request for a mortgage payment holiday?
We aim to process all requests within 3 days, although due to a high volume of forms being submitted, sometimes we may fall behind. Rest assured that we are processing the forms as quickly as we can.
When will my mortgage payment holiday start?
In most cases your payment holiday will begin with your next payment after we process your request. We will send you a text message when we have done this and you will receive a confirmation letter.
I have a payment due soon and haven’t heard from you since submitting my request
We have received a large number of requests for payment holidays and are processing them as quickly as we can. If you have a mortgage payment due in the next 7 working days which you will be unable to make, please call us on 0800 169 6333 and select option 0.
So that we can help the customers most in need, please only call if you are in this position.
You have collected a mortgage payment since I submitted my request, what can I do?
We’re sorry that this has happened. Due to the amount of customers being affected by coronavirus we weren’t able to set up some requests before the date of the next payment.
If this has caused any financial difficulties, please call us on 0800 169 6333 and select option 0, and we will work with you to find a solution. We will still process your request and will set up your payment holiday from your next mortgage payment, if you’re not in financial difficulty there’s no need to call.
I want to end my payment holiday early, what should I do?
We’re pleased you’re in a position to do this. If you’d like to bring your mortgage payment holiday to an end before it expires please call us on 0800 169 6333 and select option 0.