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What is a mortgage payment holiday?

If you’re worried about paying your mortgage during the coronavirus pandemic, a payment holiday enables you to pause your monthly payments for a temporary period.

Following revised guidance from the Financial Conduct Authority (FCA), payment holidays are now also referred to as ‘payment deferrals’. So you may see, or hear, this phrase used elsewhere. But don’t worry ‘payment holidays’ and ‘payment deferrals’ are the same thing.

Important to know first

  • you’ll be able to apply for a 3 month payment holiday.
  • during your payment holiday, interest will continue to accrue and will be added to your loan balance. This will result in an increase to your monthly payments (when they restart) and the total cost of borrowing
  • although taking a payment holiday will not worsen the status on your credit file, keep in mind that lenders may take into account other information when making future lending decisions
  • taking a mortgage payment holiday is only suitable for short-term financial concerns, find out more about what to do if you have longer-term concerns over your mortgage payments

Financial Conduct Authority guidance (FCA)

How and when can I take my mortgage payment holiday?

The guidance provided by the FCA states that:

  • the maximum payment holiday you’re allowed is 6 months in total, but that 3 months is the most you can take at any one time
  • you can apply for your first payment holiday any time before 31 March 2021. From 1 April 2021, you can only apply for another payment holiday if it’ll follow on from a previous one (so you can't have made a contractual payment during this time and must have taken less than the 6 months maximum total)
  • all payment holidays must finish by 31 July 2021. To use all 6 months available, you would need to apply for your first payment holiday at least 7 days before your February 2021 payment is due

What should I consider?

If you’re considering a payment holiday but would like some financial guidance or more help on how to tackle your debt, there are some useful resources you may benefit from:

If you’re worried about future payments, it’s important to get in touch with the organisations you’re paying to let them know. They may be able to offer other options for how or when you pay.

Who can I speak with to get independent advice?

You can find independent advice from: 

See the likely impact of a payment holiday

Use our calculator to see the likely change to your monthly payments and total cost of borrowing by taking a payment holiday of up to 3 months. You’ll need:

  • your current remaining loan balance
  • interest rate
  • remaining term

These can be found on your annual statement, or by logging on to online banking.

If you’re unable to view the calculator to see the likely impact of a payment holiday, or have any questions, please call us.

Applying for a payment holiday

Once you’ve used our calculator to see the likely impact of a payment holiday and if you'd like to apply, you can use the form below. To complete the form, you’ll need:

  • your mortgage sort code – the first 6 digits of the mortgage account number, this will always begin '40'
  • your mortgage account number – the following 8 digits of the mortgage account number

You can find these on your mortgage statement, or offer. You can also see them by logging on to online banking and looking under ‘My Accounts’. Make sure these are correct before you submit the application as we’ll use these details to match the form to your profile.

If you have any overpayment arrangements in place, these will be cancelled and you should go online, or call us, at the end of your payment holiday to set them up again.

If you’ve already had a payment holiday, please don’t complete this application form. Find out about applying for another payment holiday or further support.

Once you’ve submitted the form, we’ll contact you to confirm we’ve received it. When we’ve processed your application, assuming we’re able to approve it, we’ll send you a letter (for each account) confirming the variation to your agreement with us for your mortgage.

Making payments during your payment holiday

If you're able to afford payments of any amount during to your payment holiday, we strongly encourage you to make these as the impact on the amount of interest accruing on your balance, as well as the amount of your future monthly payments and the total cost of borrowing, could be lessened.

You can pay as little, or as much, as you like and whenever suits you. These payments can be made as a single payment, by setting up a regular standing order, or as ad-hoc payments when your finances allow. 

To set up a standing order, or one-off transfer, you’ll need:

  • beneficiary – name(s) on your mortgage account
  • sort code – first 6 digits of the mortgage account number, this will always begin '40'
  • account number – the following 8 digits of the mortgage account number
  • reference – choose your own reference, this is how the payment will appear on your mortgage statement

Your mortgage account number and sort code can be found on your mortgage statement, or offer. You can also see them by logging on to online banking and looking under ‘My Accounts’.

If you want to make payments to more than one mortgage account, you'll need to follow the process above for each account.

See more instructions on payment options.

What happens when your payment holiday ends?

Before your payment holiday ends, we’ll get in touch by letter to let you know your new monthly payment and explain your options. You’ll need to wait until you receive this letter before deciding what you want to do.

If you're coming to the end of your payment holiday and are yet to receive your letter, find out more about what happens next.

If you’ve already received your letter with your new monthly payments, find out about the next steps.


Call us

To discuss your options, please call us on 0800 169 6333, select option 0.

Lines open:

  • Monday to Saturday, 08:00 – 20:00
  • Sunday, 09:00 – 18:00

What considerations should I make?

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.

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 the volume of forms being submitted, sometimes we may fall behind. Rest assured, we'll process the forms as quickly as we can.

I have a payment due soon and haven’t heard from you since submitting my application, what should I do?

If you have a mortgage payment due in the next 7 working days that you'll be unable to make, please call us.

So we can help the customers most in need, please only call if you're in this position.

I want to end my payment holiday early, what should I do?

To bring your mortgage payment holiday to an end before it expires, please call us.

It’s easy to get in touch online. Talk to us directly through our chat channels.