We’ll only consider a request for a mortgage payment holiday if your mortgage has the Choices feature and you’ve previously made overpayments.
The government introduced a measure during the Covid-19 outbreak where any customers struggling with their finances could apply for mortgage payment deferrals. That measure was temporary and the option to request a mortgage payment deferral is no longer available. There’s more information below about what you can do if you’re having problems making your mortgage payments.
If your mortgage has Choices and you’ve built up an overpayment reservoir using that feature, you can apply for a payment holiday for a maximum of six consecutive months – or until your overpayment reservoir has been used up. You can also apply to make reduced payments until the overpayment reservoir has been used up.
We won’t be able to approve a request for a Choices payment holiday if any of the following apply:
- Your account is in arrears.
- Your mortgage has passed its term end date.
- Any of the account holders has been subject to bankruptcy proceedings or has entered an individual voluntary arrangement (IVA).
- You have a residential mortgage and you’re letting it out without our agreement.
At the end of the payment holiday or period of making underpayments, we’ll recalculate your monthly payment and because the total amount you owe will have increased, it’s likely that your monthly payment will increase.
You won’t be able to request a payment holiday if your mortgage doesn’t have the Choices feature and you haven’t already built up an overpayment reservoir.
If your mortgage has Choices, it will have been explained in your original mortgage offer documents. If you’re not sure you can call us. Mortgages originally taken out with Bradford & Bingley before 2005, or accounts originally taken out with GMAC, Kensington, Keystone or Close Brothers don’t have Choices flexible features.
If you’re having problems making your mortgage payments
If you’re having problems making your mortgage payments we’ll try to help, but we’ll need to assess your circumstances and your income and expenditure to work out how we can support you. Simply talking to us won’t affect your credit file. There’s more information about what to do next, and where you can find help on our Financial difficulties page.