If you’ve taken a payment holiday on a mortgage or credit card, or a repayment deferral on a loan, we’ll be in touch before your payments begin again.
We’ll explain what will happen next and what you can do if you’re not able to start making payments yet.
Please note that all payment holidays finished on 31 July 2021
Although payment holidays are no longer available, there is still support available which will be tailored to your individual circumstances, but these solutions may impact your credit file.
What can you do when your payment holiday ends?
1. Resume your payments
You’ll resume your monthly payments from your next payment date. If you had a Direct Debit set up before your payment holiday, it should automatically be reactivated.
Frequently asked questions
Why has my mortgage balance increased since the start of the payment holiday?
How has my mortgage term been calculated?
What is capitalisation?
Is my balance the same as a redemption quote?
If I have made payments to my mortgage during the payment holiday, will this show in the balance?
Why is the total amount payable higher than my balance?
Keep in mind
You may find your monthly payments will increase after your payment holiday. That’s because:
- interest has continued to accrue and be added to your balance during your payment holiday
- there will be fewer months of your mortgage term remaining for you to repay your balance
The amount your monthly payment increases by will depend on your loan balance, term and interest rate. We’ll make sure you’re aware of the amount when we confirm your return to monthly payments and will help you understand your options.
If you're happy to accept the new monthly payment detailed in your letter, you won’t need to do anything.
If you think you will struggle to make the increased monthly payments, there are other options:
- extending your mortgage term by up to 6 months (online application)
- extending your mortgage term for over 6 months
- making a lump sum overpayment
- switching your rate
The options available may depend on your circumstances and the date your payment holiday ends.
You’ll resume your normal monthly loan repayments from your next repayment date.
If you had a Direct Debit set up before your repayment deferral, it should automatically reactivate.
If you made your repayments by a standing order, you’ll need to set this up again.
Keep in mind
Having deferred 3 repayments, it will take longer to repay your loan than it otherwise would have, if you go back to paying your usual monthly amount. The total amount you repay on a personal loan won’t change, however, as there won’t be any charges, or additional interest.
If you have the money available, you may be able to make some additional repayments to fully, or partially, catch up.
If you missed more than one repayment at the start of the deferral, we’ll contact you to discuss how you can repay the missed payments.
You’ll need to make at least the minimum payment from your next payment date onwards.
If you had a Direct Debit set up before your payment holiday, it should automatically reactivate. However, if you cancelled your Direct Debit or standing order, you’ll need to set it up again.
Keep in mind
We’ll go back to calculating your minimum payment as before. This amount may be higher after your payment holiday, because it’s normally based on a percentage of your balance. Any accrued interest, as well as money spent on your card during the payment holiday, will be included in your balance.
Once you start making credit card payments again, it’s always best to pay off as much as you can afford each month to limit the amount of interest you’ll be charged.
2. Discuss other options
If you’re concerned about resuming payments, don’t worry, we’ll be in touch with you before your next payment is due and we’ll help you understand your options.
Credit cards and loans
If you’re unable to resume your payments, we have a range of available options to support you. Depending on your circumstances, we might be able to extend your payment holiday or loan deferral.
Find out more for credit cards.
Find out more for loans.
What should I do?
You don’t need to call us. You should receive an email, or letter, letting you know when your payments are due to resume. At that stage, we’ll make it clear what to do if you need more support.
When we get in touch, please make sure you take action, one way or another. Either to make sure your Direct Debit, or standing order, is still in place, or to take steps to get further support.
Remember, if you’re worried about making future payments, we’ll work with you to see if we can find a solution.
Will my payment holiday affect my credit rating?
If you resume your payments at the end of your payment holiday, or repayment deferral, your credit file will not have been affected by it.
If you’re not able to resume payments, we’ll explain any potential impact on your credit file when we talk to you about alternative options.
Can I move my payment dates?
You may be able to move your payments to another date, if there’s a more convenient time of the month for you to pay.