Your options after a 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 missed while you took a break.

Now that you’re ready to restart your payments, here are some of the ways we can support you:

Keep your monthly payment amount

When your payment holiday ends, you can simply choose to continue to pay your new monthly amount and spread the cost across the rest of your mortgage. If you do this, the total amount you pay back on your mortgage will be greater as interest will be charged on a higher mortgage balance.

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 set up another one to cover your new monthly amount, before your next payment is due.

If you pay by standing orderyou’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.

Overpay to get back on track

When your payment holiday ends, you might want to overpay your mortgage to cover the payments and interest charges you missed. If you make overpayments you’ll pay less in interest charges over the term of your mortgage.

You can choose to make a one - off lump sum overpayment, or set up an instruction to pay a little more than your usual amount each month. When you’ve finished making overpayments you can ask us to work out your new lower monthly payment amount.

Our payment holiday overpayment calculator will help you to work out how much you’ll need to overpay to cover the payments you missed.

Payment holiday overpayment calculator

How do overpayments work?

Extend your mortgage term to get keep your monthly payment down

When you’re ready to restart your mortgage payments, you’ll notice an increase to your monthly payment amount. You could extend your mortgage term to keep your monthly payments close to what they were before your payment holiday.

More about term extensions and how to apply

Before you overpay, please remember:

  • If you want to reduce the amount you pay each month, you’ll need to ask us to work out your new monthly payment amount after you overpay. Please don’t ask us for a new monthly amount before you’ve made all of your overpayments or if you’ve not made any overpayments.
  • If you overpay but don’t ask us for a new monthly payment amount, we’ll automatically work out a new one for you if you switch to a new mortgage deal at a later date. If you’re on a variable rate or tracker product, we’ll let you know your new monthly payment amount if there’s a change to your interest rate. 
  • If you’re still on your payment holiday and overpay, we’ll always work out your new monthly payment amount when your payment holiday ends. We can’t do it before then, so please don’t complete the request form
  • If you were behind with your mortgage payments before you took a payment holiday, we’ll use any overpayments you make to reduce your arrears balance first. If you were behind with your payments, it’s important that you speak to us before you overpay.

Overpay a lump sum

You can make a one – off overpayment on our app or in Internet Banking.

If you don’t bank with us, you should use your 14 – digit mortgage account number as the reference when you make the overpayment.

How to make a lump sum over payment

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 Internet Banking, it’s quick and easy to set up a regular overpayment online.

If you don’t use Internet Banking, we have other ways to set up a regular overpayment.

How to make a regular overpayment

You could lose your home if you don’t keep up your mortgage repayments