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What happens after your payment holiday?

When your payment holiday ends, the amount you pay each month will go up. This new monthly amount is to cover the interest charges and payments you took a holiday from. We'll write to you before the end of your payment holiday to confirm your new monthly amount.

If you need any further support as a result of coronavirus, we have some options to help you get your mortgage back on track. If you're still worried about making your mortgage payments then we have some support for you.

What are my options when my payment holiday ends?

Spread the cost across the rest of your term.

When your payment holiday ends, you can continue to pay your new monthly amount.

If you pay by Direct Debit - you don't need to do anything. We'll change the amount you pay each month and collect it as usual when it's due.

If you cancelled your Direct Debit - you'll need to call us to set up another Direct Debit on 0345 602 6200, to cover your new monthly amount. You need to do this at least five days before your next payment is due. If your Direct Debit will not be set up in time for your next monthly payment we can tell you how else to pay.

If you pay by standing order - you'll need to restart your monthly payments before the next one is due. It's important to remember to do this to make sure that your account doesn't fall into arrears.

If you have an interest-only mortgage - you should make sure that you have enough money put aside to repay the higher balance when your term ends.

If you have any questions regarding this process please call us on 0345 602 6200.

Still worried about making your mortgage payments?

If you're in a position to resume your payments after your break, we strongly recommend that you do so to keep your monthly payments and interest charges as low as possible. If you think you will be able to make part of your monthly payment please call us on 0345 602 6200 to set this up. However if you find that you need further support when your payment holiday ends, but you think you'll be able to resume your monthly payments in three months' time, you may be able to take another payment holiday for an extra three months. If you think this is the best option for you, you can apply online (PDF)

If you are worried about your situation, we have a number of ways to help. If you think you're in danger of falling behind with your mortgage payments, the key thing to remember is to let us know as soon as possible. We'll do everything we can to help ease your situation and get you back on track.

If you're worried about your situation, please call us on 0345 602 6200. We'll discuss your options with you and explain how we can help. Our lines are open 8am - 8pm Monday to Friday and 9am - 4pm on Saturdays. We're closed on Bank Holidays. Find out more about how we can help

If Coronavirus has affected your income, you can find out more about the support available to you on the UK Government website.

Overpay to get back on track

If you're in a position to resume your payments after your break, we strongly recommend that you do so to keep your monthly payments and interest charges as low as possible. You can also consider making an overpayment to your mortgage to cover the payments and interest charges you missed.

You can choose to make a one-off lump sum overpayment or set up an instruction to pay more than your usual amount each month*.

If you have an arrears balance on your mortgage from before you took a payment holiday, any lump-sum overpayment you make will be allocated against the arrears balance first. If you overpay more than the arrears balance, the surplus will be allocated against the payments and interest charges you missed.

Here are some examples of how that could affect your mortgage:-

Please note that these examples do not apply to offset mortgages. If you have an offset mortgage you can find out more about how this works by accessing our dedicated offset information.

A 3 month payment holiday followed by regular overpayments

Repayment Mortgage Interest Only Mortgage
Outstanding mortgage balance before payment holiday £100,000 £100,000
Interest rate 2.75% 2.75%
Term remaining 20 years (repayment mortgage) 20 years (repayment mortgage)
Regular overpayment £200 pm for 12 months £200 pm for 12 months
Monthly payment before payment poliday £542 £229
New monthly payment after payment holiday £551 £231
New monthly payment after overpayment ** £538 £225
Reduction in monthly payment resulting from overpayments £13 £6
Total amount to repay before payment holiday £130,120 £155,000
Total amount to repay after three month repayment holiday £130,605 £155,375
Total amount to repay after overpayments £129,925 £154,100
Reduction in total amount to repay due to overpayments £680 £1,275

A 3 month payment holiday followed by a lump sum overpayment

Repayment Mortgage Interest Only Mortgage
Outstanding mortgage balance before payment holiday £100,000 £100,000
Interest rate 2.75% 2.75%
Term remaining 20 years (repayment mortgage) 20 years (repayment mortgage)
Lump sum overpayment £1,000 £1,000
Monthly payment before payment holiday £542 £229
New monthly payment after payment holiday £551 £231
New monthly payment after overpayment £545 £228
Reduction in monthly payment resulting from overpayment £6 £3
Total amount to repay before payment holiday £130,120 £155,000
Total amount to repay after three month repayment holiday £130,605 £155,375
Total amount to repay after overpayment £130,315 £154,835
Reduction in total amount to repay due to overpayment £290 £540

* Lump sum or regular overpayments will not be automatically considered after a payment holiday. You will need to call us to discuss these options

** Monthly payments are only changed if you request a recalculation

How do I overpay my mortgage?

When your payment holiday ends, you may want to catch up with the payments and interest charges you missed. When you make overpayments you will need to request a monthly payment re-calculation.

You can overpay in two ways:

Overpay a lump sum

If you wish to make a lump sum overpayment please call us on 0345 602 6200 where we'll discuss your options with you and explain how we can help. Our lines are open 8am - 8pm Monday to Friday and 8am - 4pm on Saturdays. We're closed on Bank Holidays.

Set up a regular overpayment

Pay a little more than usual each month. If you already pay your mortgage by Direct Debit and you're registered for Online Banking, it's quick and easy to set up a regular overpayment online.

If you don't use internet banking, don't worry, call us on 0345 602 6200 where we will be happy to help.

Ask us to work out your new monthly amount

If you want your overpayments to reduce your monthly payments, you'll need to ask us to re-calculate your new lower monthly amount.

If you don't request your new amount your monthly payments will be the same amount as before you overpaid. Your monthly mortgage payment will only be recalculated the next time we need to do it, for example following a Bank of England Base Rate change.

To request a monthly payment re-calculation call us on 0345 602 6200.

What if I have taken a 1 or 2 month payment holiday?

You can ask to take a payment holiday for the remaining months that add up to a maximum of 3 months in total. You will need to call us to let us know you would like to take this.

Will a Payment Holiday affect my Credit Score?

Payment holidays will not have a negative impact on your credit file. However, you should remember that lenders may use information obtained from other sources, such as bank account information, in their lending decisions.

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