Mortgages and coronavirus
How we can help
Find out what you need to know about applying for support with your mortgage for the first time or if you have a payment holiday due to expire soon.
Applying for support for the first time
If you have been financially impacted due to coronavirus we have a number of options to support you including mortgage payment holidays and flexibility on the amount that you can pay towards your mortgage.
Important – before you apply
If your next payment’s due in the next nine working days, your payment holiday will start on the following month’s payment date and you’ll need to make next month’s payment in full. If this isn’t possible, please call us straight away.
This information is for people who’ve had a payment holiday and need help with that coming to an end. If you haven’t had a payment holiday and need help with your mortgage, please read our FAQs.
Before you apply, please read the questions and answers below carefully. You’ll find out if taking a further payment holiday or reducing your payments is right for you, the impact it will have on your future mortgage repayments, if you’re eligible and how to apply.
If you decide a payment holiday isn't right for you, we’ll talk to you to help find the best solution for you and your circumstances.
Taking a further payment holiday continues your temporary break from mortgage payments to help you get through financial difficulties caused by the coronavirus situation. While it’ll let you reduce your monthly outgoings in the short term, your mortgage will cost more overall. Before applying, please read ‘How could this affect my future mortgage payments?’ below for illustrative examples.
A further payment holiday won’t be recorded on your credit file, so it won’t affect your credit score, but lenders might take it into account when making future lending decisions.
Making reduced payments to your mortgage is a temporary measure intended to help you if coronavirus is still affecting your income after your payment holiday, and you can’t yet return to making your full monthly repayments. It’s generally in your best interest if you can make some payments towards your mortgage without affecting your essential living and work travel expenses.
Before applying, please read ‘How could this affect my future mortgage payments?’ below for illustrative examples.
Reduced payments won’t be recorded on your credit file, so won’t affect your credit score, but lenders might take them into account when making future lending decisions.
Further payment holidays and temporarily reduced payments are available if you have a mortgage for your home or a buy-to-let property, and your income is being affected by coronavirus.
You’ll need to apply separately for each account. It’s important to consider what you can afford to pay and how to apply this across all of your accounts. For example, you might want to think about factors such as your different mortgage account interest rates and balances. You could offer to pay something towards some accounts and apply for a payment holiday on others, to make the most of what you can afford and minimise the interest you’re charged.
There are a number of online calculators that could help you understand the impact of a payment holiday on your mortgage. For example, Money Supermarket has a dedicated page to show how a mortgage payment holiday could affect your future repayments. This is an independent service and not provided by us.
Before you think about how much you can afford to pay towards your mortgage, it’s important to consider your other monthly commitments. These can include essential living costs, such as household bills (for example, council tax, utilities, phone), travel expenses (for example, commuting, fuel), and other credit commitments (for example, loans, credit cards, overdrafts).
Yes, we’ll still charge interest on your mortgage, and apply it to your balance monthly. Please read ‘How could this affect my future mortgage payments?’ below for illustrative examples.
In addition to any previous payment holidays you’ve taken, during a further payment holiday or period of reduced payments, we’ll again charge interest on the full amount you owe, and add this interest to the balance each month. If the payment you’re making doesn’t fully cover the interest due each month, we’ll add the difference between the interest due and the amount you’re paying to your mortgage, which will increase the amount you owe.
This means the total amount of interest you’ll pay over the full term of the mortgage will be higher and you’ll pay more for your mortgage overall than you would have done otherwise.
When the payment holiday or temporarily reduced payments end, we’ll increase your monthly payment amount unless you agree another option with us. This means you can make up the payments you deferred over the rest of your mortgage term. It also means you’ll pay interest on the deferred payments over the remainder of the mortgage term.
Taking a payment holiday or temporarily reducing your payments won’t affect your current mortgage’s terms and conditions.
Yes – you can submit an application to switch during a payment holiday. If you’ve already applied for a rate switch that hasn’t taken effect yet, that’s OK too. Rate switches won’t affect the terms of your payment holiday.
Yes – we offer further payment holidays or temporarily reduced payments in this case on the understanding that you pass this relief on to tenants who are struggling to pay their rent. If you’re applying because your tenants have been affected by coronavirus, please select ‘Yes’ to the question ‘Has your household income been affected by the coronavirus situation?’ on our online form.
We’ll accept a request from anyone named on the mortgage. We’ll only send confirmation to the person who’s made that request though. If we receive two applications for the same account, we’ll process the one we receive first and reject the second.
Find practical advice to help you tackle money troubles and debt, improve your financial habits, and see how we can offer you support.
For independent, advice, not provided by us:
- Money Advice Service has a dedicated page for coronavirus support.
- FCA has also shared some information on how to deal with financial difficulties during the coronavirus situation.
- Money Supermarket has a dedicated page to show how a mortgage payment holiday could affect your future repayments.
If you’d like independent advice on your financial situation, you can get this free from the debt-counselling organisations below: