What happens after a payment holiday?

When your payment holiday ends, the amount you pay each month will go up. This new monthly amount is to cover the interest charges and payments you missed while you took a break.

Your options


Keep your new monthly payment amount

When your payment holiday ends, you can simply choose to continue to pay your new monthly amount and spread the cost across the rest of your mortgage. If you do this, the total amount you pay back on your mortgage will be greater as interest will be charged on a higher mortgage balance.

If you pay by Direct Debit – you don’t need to do anything. We’ll change the amount you pay each month and collect it as usual when it’s due.

If you cancelled your Direct Debit - you’ll need to set up another one to cover your new monthly amount, before your next payment is due.

If you pay by standing order – you’ll need to restart your monthly payments before the next one is due. It’s important to remember to do this to make sure that your account doesn’t fall into arrears.

If you have an interest-only mortgage – you should make sure that you have enough money put aside to repay the higher balance when your term ends.
 


Overpay to get back on track

When your payment holiday ends, you might want to overpay your mortgage to cover the payments and interest charges you missed. If you make overpayments you’ll pay less in interest charges over the term of your mortgage

You can choose to make a one - off lump sum overpayment, or set up an instruction to pay a little more than your usual amount each month. When you’ve finished making overpayments you can ask us to work out your new lower monthly payment amount.

Our payment holiday overpayment calculator will help you to work out how much you’ll need to overpay to cover the payments you missed.


Payment holiday overpayment calculator

How do overpayments work?


Extend your mortgage term to keep your monthly payments down

When you’re ready to restart your mortgage payments, you’ll notice an increase to your monthly payment amount. You could extend your mortgage term to keep your monthly payments close to what they were before your payment holiday.


You can overpay in two ways:

Please remember: After you’ve made your overpayments you can ask us to work out your new monthly payment amount. This will help to reduce the amount you pay each month.

If you were behind with your mortgage payments before you took a payment holiday, we’ll use any overpayments you make to reduce your arrears balance before your overall mortgage balance. If you were behind with your payments, it’s important that you speak to us before you overpay. 


Overpay a lump sum

You can make a one-off payment on our app or in Online Banking.
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If you don’t bank with us, you should use your 14 – digit mortgage account number as the reference when you make the overpayment.

How to make a lump sum overpayment

 


Set up a regular overpayment

Pay a little more than usual each month. If you already pay your mortgage by Direct Debit and you're registered for Online Banking, it's quick and easy to set up a regular overpayment online. ​

If you don’t use Online Banking, we have other ways to set up a regular overpayment.

How to make a regular overpayment


Reduce your monthly payment amount after an overpayment

When you’ve made your overpayments, you can ask us to work out a new, lower monthly payment amount. If you don’t ask for a new monthly amount, your payments will stay the same as before your overpayments.

We’ll automatically work out a new monthly amount for you if you switch to a new mortgage deal. If you’re on a variable rate or tracker product, we’ll let you know your new monthly payment amount if there’s a change to your interest rate.

Request a monthly payment re-calculation

Your home may be repossessed if you do not keep up repayments on your mortgage.