Part payment holidays

What is a part payment holiday?

This is where you pay less than your usual monthly amount, for up to 3 months.

Rather than taking a full payment holiday and make no payments at all, you can ask to pay a reduced payment amount that’s fixed for up to 3 months.

If you choose to take a part payment holiday, your monthly payment and the amount you pay back overall will still go up but not by as much as if you’d taken a full payment holiday.

Taking a part payment holiday 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.

You should only apply if you are experiencing difficulties in making your mortgage payments and remember, you must make the fixed monthly payments we agree with you, otherwise your mortgage will go into arrears and this could have a negative impact on your credit file.

If you are currently on a part payment or full payment holiday you can only apply for another one in the final month of your existing payment break.

How will this impact my future mortgage payments?

If you take a part payment holiday, you will pay less than your usual monthly amount 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 made your expected payments. At the end of your part payment holiday we’ll work out your new monthly payment amount over your remaining term, taking this increase into account.

In this way, if you have a repayment mortgage the new monthly payment amount will ensure you repay the full outstanding balance by spreading the part payments you haven’t made over your remaining term.

There are other ways for you to catch up with the payments you’ve missed. For example, when you’re in a better financial position you could make overpayments to get back on track. We’ll write to you to explain all your options before your payments are due to restart.

What could this mean for my mortgage?

Part 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, but not by as much as if you’d taken a full payment holiday.

If your circumstances change you can cancel a part payment holiday at any time. If you still need support then don’t worry, we have other options that may be better suited to your needs.

Can I take a part payment holiday?

You can apply for a part payment holiday if your income has been affected by coronavirus and you are no more than 6 months behind with your mortgage payments.

If you are behind with your mortgage payments by more than 6 months, please visit our coronavirus/financial difficulties page for more details on how we can support you.

Where you have a joint mortgage, everyone must agree to the payment holiday.

How do I apply for a part payment holiday?

Our payment holiday calculator will show you how paying less than your usual amount could affect your mortgage and how much you pay each month. It's important you understand the impact a part payment holiday could have on your mortgage before asking to make a reduced monthly payment.

Once you have used our payment holiday impact calculator, if you still want to apply, you can use our online form to request a payment holiday.

Payment holiday impact calculator

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