Coronavirus and payment holidays
As the impact of coronavirus is felt across the UK, you may be worried about how it could affect you and your home. Your peace of mind is still our top priority, so we’ve created some extra ways to help, if you need it.
If the coronavirus has affected your income, you may wish to take a mortgage payment holiday but you should only apply if you are experiencing difficulties in making your mortgage payments.
What is a payment holiday?
A mortgage payment holiday is a break from paying your mortgage. It won’t affect your credit rating, so there’s one less thing to worry about.
You can ask to take a break of up to a maximum of three months if you have been impacted through coronavirus.
How will this impact my future mortgage payments?
If you take a mortgage payment holiday you won’t make mortgage payments for up to 3 months. During this period interest will continue to be charged at your existing interest rate(s) and the total amount of interest you pay over the term of the mortgage will increase.
This will result in a higher mortgage balance than if you’d not taken out a holiday. At the end of your payment holiday we’ll recalculate your payments over your remaining term, taking this increase into account.
In this way, if you have a repayment mortgage the new monthly payment will ensure you repay the full outstanding balance by the end of your existing mortgage term by spreading the payments you haven’t made over your remaining term.
There may be other ways for you to repay the payments you’ve missed, for example by making a lump sum payment. But don’t worry, before your payments are due to restart we will write to you with more details and give you all the options available.
Payment holiday examples
Here are some examples of how a payment holiday can affect monthly payments and the total amount payable for repayment and interest-only mortgages. The examples shown below are for a three-month payment holiday.
Interest only mortgages
The capital amount repayable at the end of your mortgage term will also increase by any interest charged during the holiday period. You may need to consider whether you’ll have sufficient funds to be able to repay this at the end of the mortgage term.
What other options are available
If you have an Offset Account you may be able to use this to cover your monthly payments during this period. You must decide which option is best for you.
Can I take a payment holiday?
You can apply for a payment holiday if:
How it works
1. We’ll write to you to let you know if your request has been accepted. Please allow up to ten working days for a response.
2. If you take a payment holiday, when it ends your monthly payment will go up. This is because during the payment holiday period interest will continue to be charged and your mortgage balance will increase. Your monthly payment will be calculated on the new balance and for repayment mortgages, the payments which haven’t been made will be spread over the remaining mortgage term.
3. There may be other ways for you to repay the payments you’ve missed, we’ll write to you with more details on your options before your payments are due to restart.
4. As long as you are not already behind with your mortgage payments, then your payment holiday will not impact your credit rating.
5. If you are already behind with your mortgage payments, then your payment holiday will not increase the number of months you are behind and will not worsen your credit rating.
6. If you are behind with your mortgage payments please ensure you have visited our financial difficulties page for more details on how we can support you before submitting this form.
It's important to note that the amount you owe will go up as we’ll still charge interest for the duration of your payment holiday.
You’ll need your 10-digit mortgage account number. You can find this in Online Banking or on any letters you’ve had from us about your mortgage.
You should also be aware that because we're busier than usual, it may take up to 10 working days for your payment holiday to take effect.
If your next mortgage payment is due in the next 10 working days, your payment holiday may not start until the following month. We’ll send you a letter to confirm the start date of your payment holiday.
How do I apply for a payment holiday?
Mortgage payment holidays can help with a temporary reduction in outgoings. However, your mortgage balance will increase and you will pay more over the term of your mortgage. So it’s important that you only apply if you’re currently having difficulties making your mortgage payments.
If you still want to apply, we’re currently dealing with a much higher number of phone calls than usual, so you may find it quickest to ask for a payment holiday online.
1. Log into online banking and send us a secure message with your request.
By requesting a payment holiday in this way, you agree that:
- you and anyone else named on this mortgage understand that your monthly payments will increase as a result of this payment holiday
- you only need this payment holiday due to coronavirus (Covid-19) related reasons
- you and anyone else named on the mortgage are aware that you will need to review any insurance policies which are calculated on the balance of your mortgage
- your mortgage payments are fully up to date or your mortgage is less than 6 months in arrears and you have opted not to speak with us to review alternative options before applying for a payment holiday.
You must provide the following information in your message
2. Completing our payment holiday request form (PDF, 112KB) and email this back to us, to OnlineSecurity@IF.com (we use an Intelligent Finance email address; Intelligent Finance and St. James’s Place Bank are sub brands of Lloyds Banking Group). If you send us an email, the message may not be secure and there is a risk that it could be intercepted. This form captures personal information and if you choose to send an 'unsecure' email your personal data could be at risk. If you'd prefer, you can print the completed form, and send it to us. Our address is:
St James’s Place Bank
Once you’ve submitted your payment holiday request, you don’t need to call us
We’ll send you a letter to let you know if you can take a payment holiday. Please allow up to ten working days for a response.
Please do not cancel any future payments until you have received a letter of confirmation.
If you pay by Direct Debit
If you pay by any other method
We will confirm your new payment amount in writing prior to any payments being taken following the payment holiday.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.