On this page you’ll find the information you’ll need to prepare you for the end of your mortgage payment holiday or payment holiday extension and the options available if you need further support. In response to guidance provided by the Financial Conduct Authority, we're no longer offering payment holidays and payment holiday extensions to all customers who request one. We'll still be offering support if you need it. This will be tailored to your individual circumstances and it may have impact your credit file.
You are in section Home Help Coronavirus Financial support Mortgage support Preparing for the end of your mortgage payment holiday extension Current Page
Next steps for mortgage payments
Before your payment holiday or payment holiday extension ends, we’ll write to you to explain your options. If you haven’t heard from us yet, you can see your options below, but you’ll need to wait until you receive this letter before deciding what you want to do.
What if I want to review my new payments?
The letter you receive will let you know your new monthly payment. You may find your monthly payment will increase after your payment holiday or payment holiday extension. That’ll be because:
- interest has continued to accrue and been added to your outstanding mortgage balance during your payment holiday
- there will be fewer months of your mortgage term remaining for you to repay your balance.
Below are some options that may either:
- make your new payment easier to manage
- allow you to reduce your overall balance and the interest you’re charged.
If you’re comfortable with your new monthly payment and don’t want to explore the options below, your regular monthly payment will recommence and you don’t need to do anything.
Your options
The options below could help you reduce your monthly payment or reduce your overall balance.
Reduce your monthly payment
Extend the term (length) of your mortgage
Dealing with Financial Difficulty
If you’re continuing to experience financial difficulties, it’s important to let us know as soon as possible.
Extend the term (length) of your mortgage
If you have a capital repayment loan (rather than interest only), you may be able to extend the term (length) of your loan by up to 6 months. This could help reduce your monthly payments so they’re closer to the amount they were before you took your payment holiday.
How it works
The table below helps illustrate how your monthly payments could change by extending the term of your loan up to 6 months. This table uses rounded figures.
| Loan balance | £150,000 | £250,000 |
|---|---|---|
| Loan balanceRemaining loan term | £150,00015 years | £250,00030 years |
| Loan balanceInterest rate | £150,0002% | £250,0002% |
| Loan balanceMonthly payment before extension | £150,000£965 | £250,000£924 |
| Loan balanceMonthly payment after 6 month term extension | £150,000£939 | £250,000£913 |
| Loan balanceDecrease to monthly payments | £150,000£27 | £250,000£11 |
| Loan balanceFuture total cost of borrowing | £150,000£174,573 | £250,000£334,156 |
| Loan balanceAdditional interest payable (incl. in future total cost of borrowing) | £150,000£826 | £250,000£1,499 |
Next steps
1. To see the likely change to your monthly payments by extending the term of your mortgage, enter your revised payment details from your end of payment holiday letter into our calculator.
If you're unable to view the calculator, or would like to discuss the possibility of extending your mortgage term for longer than 6 months, please call us on 03 456 100 103 (lines open Mon to Sat 8am to 8pm and Sun 9am to 8pm).
2. Once you’ve used our calculator to illustrate the likely financial implications of extending your loan term by up to 6 months, if you'd like to apply, you can complete the online form below or call us on 03 456 100 103 (lines open Mon to Sat 8am to 8pm and Sun 9am to 8pm).
Complete the form > Opens an overlay [Will show a security message first]
Switch to a different mortgage rate
You can switch to a new interest rate at any time during your mortgage term and depending on your circumstances, switching rates may save you money each month.
If your next mortgage payment is due within 21 days and you wish to select this option, please call us on 03 456 100 193 (lines open Mon to Sat 8am to 8pm and Sun 9am to 8pm) so we can discuss this with you.
Step 1 – Find and compare our current mortgage rates or view all our mortgage rates.
Step 2 – Book an appointment to speak to someone about your options.
To book an appointment, please call us on 03 456 100 103 (lines open Mon to Sat 8am to 8pm and Sun 9am to 8pm).
Make an extra payment
If you have funds available, you could make an extra payment to reduce your capital balance. This could also reduce your ongoing future monthly payments.
How it works
The letter you’ll receive confirms the amount of interest that has accrued and been added to your balance during your payment holiday. By paying this amount, or any other sum, you’ll reduce the balance of your loan on which interest is charged and your monthly payment.
Next steps
You can call us on 03 456 100 103 (lines open Mon to Sat 8am to 8pm and Sun 9am to 8pm) to discuss making an extra payment. We’ll be able to tell you what impact it would have on your monthly payment. We can then arrange this for you if you want to go ahead.
Making payments during your payment holiday or payment holiday extension
If you're able to afford payments of any amount during a payment holiday or payment holiday extension, 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, would be lessened.
You can pay as little, or as much, as you like and whenever suits you. You can:
- make a single payment
- set up a standing order
- make ad-hoc payments when your finances allow.
To set up a standing order, or one-off transfer, you'll need some details from your end of payment holiday letter:
- beneficiary – name(s) on your mortgage account
- sort code – first 6 digits of the mortgage account number on your letter, this will always begin '40'
- account number – the following 8 digits of the mortgage account number on your letter
- reference – choose your own reference, this is how the payment will appear on your mortgage statement.
If you want to make payments to more than one mortgage account, you'll need to follow the process above for each account.
Dealing with financial difficulty
Having reviewed these options, if you need additional support, it’s important to get in touch with us as soon as possible so we can help. We have dedicated advisors who can discuss the support available which we will tailor to your individual circumstances. It’s important to note that the support we provide may have an impact your credit file.
Before you call, please make sure you have details of your income and outgoings to hand as we’ll be discussing these with you. You can find this on your bank statement or Online Banking.
Call 03 456 100 173 – We’re here Mon to Sat 8am to 8pm and Sun 9am to 8pm.
Further support
The Financial Conduct Authority (FCA) has provided guidance you may want to follow.
1. Try making a list of all the organisations you make payments to. Record how much you pay them and whether you’ve fallen behind on any payments. This includes essential household bills such as electricity and gas. It also includes loans and any other debts or payment obligations you may have.
2. It's important to understand which of your debts are priority debts. Some debts will be more urgent than others, because the consequences of not paying them can be more serious than for other debts. For example, priority debts may include things like your mortgage and where you’ve made a contractual commitment to pay.
3. For more on which debts you should pay as a priority, see the Money Advice Service's page on How to prioritise your debts. Once you’ve prioritised your debts, you can work out a budget to understand how much money you’ll have available to pay what you owe. You might like to use a tool such as the Money Advice Service's budget planner.
4. If you’re worried about being able to make future payments, it’s important to get in touch with the organisations you’re paying and let them know. They may be able to talk to you about options for changing how or when you pay.
To find out more about managing your money during and after the coronavirus pandemic, see the Money Advice Service’s coronavirus support or contact the Money Advice Service for help on 0300 500 5000.
Who can I speak with to get independent advice?
You can also get free independent advice from:
- StepChange Debt Charity: visit their website Opens an overlay [Will show a security message first] or call 0800 138 1111.
- The Money Advice Service: visit their website Opens an overlay [Will show a security message first] or call 0300 500 5000.
- National Debtline: visit their website Opens an overlay [Will show a security message first] or call 0808 808 4000.
- Citizens Advice: visit their website Opens an overlay [Will show a security message first] or call 0344 411 1444.