Mortgage repayment deferral

We know that as a result of the Covid-19 pandemic, you might have concerns about your finances. A payment deferral on your mortgage or a ‘mortgage holiday’ might give you the flexibility you need. 

 

We’re here to help so if you have any questions about the process please call us on 0800 220 568.

Can I apply for a payment deferral on my residential mortgage?

If you’ve been affected by Covid-19 either directly or indirectly, you can apply for a payment deferral on your residential mortgage for up to three months. 

 

It’s important you understand the impact a payment deferral will have on the amount you’ll pay on your mortgage. Please use our Mortgage Payment Deferral Calculator to see what this will be. 

 

Please note - online calculators are intended to provide an illustration of what your new monthly repayment might be and what the extra cost looks like over the remaining term of your mortgage. They're not 100% accurate, so won’t reflect what your exact payment will be or the exact amount extra to be repaid. 

 

If you believe a deferral is right for you, you can use this link to apply. You’ll need your account number, mortgage balance, current interest rate and the remaining term on your mortgage. If you haven’t got that information to hand, please call us on 0800 220 568 and we’ll help you.

Can I apply for a payment deferral on my Buy-to-Let mortgage?

If you’re up to date with your payments, you’re not in arrears but your tenants are having difficulty paying their rent due to Covid-19, you can apply for a payment deferral on your Buy-to-Let mortgage for up to three months. 

 

Please make sure that if a deferral is agreed and no mortgage payments have to be made for up to three months, you offer a similar arrangement with your tenant with regards to rent payments. 

 

It’s important you understand the impact a payment deferral will have on the amount you’ll pay on your mortgage. Please use our Mortgage Payment Deferral Calculator to see what this will be. 

 

Please note - online calculators are intended to provide an illustration of what your new monthly repayment might be and what the extra cost looks like over the remaining term of your mortgage. They are not 100% accurate so won’t reflect what your exact payment will be or the exact amount extra to be repaid.

 

If you believe a deferral is right for you, you can use this link to apply. You’ll need your account number, mortgage balance, current interest rate and the remaining term on your mortgage. If you haven’t got that information to hand, please call us on 0800 220 568 and we’ll help you.

When should I apply?

You may not need to defer your repayments immediately and should carefully consider when the time is right for you. If you decide to go ahead, interest will accrue in the deferral period and you’ll need to make up deferred payments in the future. 

 

A payment deferral won’t be recorded as part of your credit history, but it could affect future lending decisions. Lenders may take into account other related information such as that from your bank account and changes to income and expenditure.

I’m already experiencing financial difficulty and I’m behind on my repayments, what can I do?

There may be other steps we can take to help you. Please talk to us by calling 0800 220 568 and we’ll discuss your options.

How does a payment deferral affect my mortgage?

Your monthly repayments don’t need to be made during the payment deferral period. However, you’ll still owe these payments and interest will continue to be charged throughout this time which will need to be paid at a later date. 

 

Your mortgage balance will increase as a result of a deferral and therefore the interest you pay will also increase. Your payments after the deferral period will usually increase as a result. 

 

If you’re able to make part of your normal monthly payment to reduce interest charges, you should consider this.

Can I extend the payment deferral period?

You can extend your mortgage deferral period up to a maximum of three months. However, please remember you’ll still owe these payments and interest will continue to be charged during this time. 

 

Please use our Mortgage Payment Deferral Calculator to see what impact extending your payment deferral will have on the amount you’ll pay on your mortgage. However, please note that online calculators are intended to provide an illustration of what your new monthly repayment might be and what the extra cost looks like over the remaining term of your mortgage. They're not 100% accurate so won’t reflect what your exact payment will be or the exact amount extra to be repaid. 

 

Remember, it's always in your best interest to pay something towards your mortgage if you can. If you would like to apply for a partial payment deferral please contact us on 0800 220 568 to discuss this.

What happens when the payment deferral period ends?

We’ll contact you before the end of your deferral period and together we’ll agree an arrangement to repay the interest charges incurred and make up the deferred payments. 

 

It usually makes most financial sense to pay these off as quickly as possible. If the interest and deferred payments are repaid over the remaining term of your mortgage, this will generally lead to you paying much more than if you’d paid them off over a shorter period of time. 

Can I make a lump sum payment?

You might have taken a payment deferral ‘just in case’. If so, and you didn’t suffer any financial hardship or weren’t as badly affected as you feared, it would benefit you to repay the amount in full as soon as possible.

 

The amount owed is currently being included in your mortgage balance and will continue to accrue interest until the point it is repaid.

Can I repay the amount over a shorter term?

We can work together to agree an arrangement to repay the amount owed over a shorter time, rather than over the remaining term of the mortgage. This will mean you’re not paying more than you need to over a longer period of time and will pay less interest overall.

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