If you are experiencing problems paying your mortgage as a result of circumstances related to Coronavirus, one option you might like to consider is a mortgage Payment Break. These are available for:
- Residential mortgage customers
- Buy to Let mortgage customers whose tenants have been impacted by Coronavirus
- Repayment and Interest Only mortgages
You will be able to apply for a Payment Break up until 31 October 2020.
What would taking a Payment Break mean for you
A mortgage Payment Break would allow you to reduce your monthly mortgage payment to an amount that is realistically affordable to you, or to make no payments for a period of up to three months.
It is important to understand that a Payment Break is temporary and you would have to pay back the payments missed and the interest added to your account during the Payment Break period at a later date. This may mean that your monthly payments will be higher, it may take longer to repay your mortgage and it is also likely that the overall cost of your mortgage will increase.
Impact on your credit history
Choosing to apply for a Payment Break, should not have a negative impact on your credit file. However, there are other ways lenders will be able to tell if you took a Payment Break, which could impact future lending decisions.
At the end of your Payment Break
At the end of your Payment Break if you are continuing to experience financial difficulties due to Coronavirus, there will be the option to apply for an Extended Payment Break.
Alternatively, we will work with you to explore other options including finding an affordable way for you to repay the total cost of your Payment Break as explained above.
It is also important to understand that until your Payment Break is repaid in full you will continue to accrue further interest in the normal way increasing the overall cost of the Payment Break.
For these reasons you should only consider a Payment Break if you are experiencing Coronavirus related financial difficulties that affect your ability to pay your mortgage.
To minimise the effects explained above, you should also base your request on the maximum amount that you believe you can realistically afford to pay each month.
If you are nearing the end of your Payment Break
We will be in touch to explain the range of options available and what you need to do. This will include how to apply for an Extended Payment Break if you are continuing to experience problems paying your mortgage due to Coronavirus.
Alternatives to a Payment Break
Payment Breaks are intended for customers experiencing payment difficulties due to Coronavirus and therefore may not be the most appropriate option for everyone. If there are different reasons for your payment difficulties, please contact us to arrange an Account Review with our Mortgage Support Team who will explore ways in which we can support you to maintain your mortgage on an affordable and sustainable basis.
Help with your decision
The decisions you make are very important for you and your household. Your mortgage is a priority debt and if you are unsure how to proceed and/or what to do in relation to it or any other debts you may have, then before reaching your decision you should consider obtaining independent advice.
You can find useful information regarding sources of free independent advice in our ‘Where to Find Sources of Free & Independent Advice’ leaflet, as well as in the Support For Consumers section of the FCA’s website.
Requesting a Payment Break and what happens next
If having read this information and considered your circumstances, you believe that a Payment Break is an appropriate choice for you, please complete a Payment Break Request Form.
We will consider the information you provide and we will be in touch to confirm whether your Payment Break has been agreed or if we need more information before we can decide how to proceed.
Extended Payment Breaks
Requesting an Extended Payment Break
More Information about how you can apply for an Extended Payment Break and an application form will be provided with the End of Payment Break letter which will be sent to you towards the end of your Payment Break. You cannot apply for an Extended Payment break using the online form.