When the payment holiday ends, we’ll spread the deferred amounts over the remaining term, which will increase your regular payment. If you’d like to discuss a different option, please get in touch at the time.
If you have an interest only mortgage, you’ll need to make sure the plans you have in place to repay the full balance at the end of the mortgage term will cover any additional amounts due as a result of this arrangement.
This table shows the impact of taking a three month full or reduced payment holiday on monthly payments.
After the payment holiday the amount paid on a monthly basis increases and the total cost of borrowing over the term of the mortgage increases.
Making a contribution to your mortgage, no matter how small, will reduce the overall increase in costs.
Outstanding Mortgage Balance: £160,000
Mortgage payment reduction |
Your original monthly payment |
Your payment for the next 3 months |
Your payment after holiday |
Increase in monthly payments |
Total Borrowing Cost |
Increase in total borrowing cost |
---|
No reduction |
£1,029.61 |
£1,029.61 |
£1,029.61 |
£0 |
£192,929.39 |
£0 |
50% reduction |
£514.81 |
£514.81 |
£1,039.70 |
£10.09 |
£193,244.07 |
100% reduction |
£0 |
£0 |
£1,049.78 |
£20.17 |
£193,558.75 |
The illustration is based on a repayment mortgage of £160,000 payable over 15 years, initially on a fixed rate of 2.00% for 5 years and then our variable tracker rate at 3.14% above the Bank of England Base Rate (currently 0.10%) for the remaining term.
Outstanding Mortgage Balance: £900,000
Mortgage payment reduction |
Your original monthly payment |
Your payment for the next 3 months |
Your payment after holiday |
Increase in monthly payments |
Total Borrowing Cost |
Increase in total borrowing cost |
---|
No reduction |
£4,552.95 |
£4,552.95 |
£4,552.95 |
£0 |
£1,167,431.60 |
£0 |
50% reduction |
£2,276.48 |
£4,587.85 |
£34.90 |
£1,169,447.45 |
£2,015.85 |
100% reduction |
£0 |
£4,622.76 |
£69.81 |
£1,171,463.31 |
£4,031.71 |
The illustration is based on a repayment mortgage of £900,000 payable over 20 years, initially on a fixed rate of 2.00% for 5 years and then our variable tracker rate at 3.14% above the Bank of England Base Rate (currently 0.10%) for the remaining term.
This example assumes that at the end of the payment holiday we add the deferred payments to the mortgage.
The total cost of borrowing is made up of the loan amount and interest, it does not include other fees or charges.
These amounts are only a guide and are based on the assumption that there is no change to the mortgage or its terms, and that the Bank of England Base Rate does not change.