What is a mortgage payment break?
A payment break allows you to stop paying your mortgage for the agreed period of time.
If full payments are not made on your mortgage, there may be circumstances in which we have to inform Credit Reference Agencies and this may impact your credit rating/score. The extent of the impact to your credit rating/score will depend on your overall financial profile. If this is the case, we will inform you during your application.
For further information on the impact you should speak with an independent debt advice agency who can give you support and advice.
Details of free money advice agencies (PDF, 29KB)
What happens to my payments, how will that impact my loan going forward?
A mortgage payment break means a break of up to 3 months from your mortgage payments (at a time), and you will need to make up these payments through the existing term of your mortgage.
At the end of your payment break your monthly repayments will be re-calculated and will increase to cover the payments you would have made and any interest that has continued to build during the break period. This ensures that your mortgage is repaid in your original mortgage term, as your mortgage term will not be extended.
Here are some things to consider before applying for a payment break:
At the end of the payment break your monthly repayments will be recalculated and you will see an increase in your monthly payments
The total amount of interest you pay over the term of the mortgage will increase
Your mortgage term will not be extended
Eligibility criteria and conditions apply.
Other important information you need to be aware of:
A mortgage repayment break can help with a temporary reduction in outgoings. However, your mortgage balance will increase and you will pay more over the term of your mortgage. So, it’s important that you only apply if you’re currently having difficulties making your mortgage payments.
We may ask you for further information depending upon your circumstances, please make sure all the information is correct. If not, this will cause a delay in dealing with your request.
One of our team will contact you to discuss your financial circumstances and your requirements.
If full payments are not made on your mortgage, there may be circumstances in which we have to inform Credit Reference Agencies and this may impact your credit rating/score. The extent of the impact to your credit rating/score will depend on your overall financial profile. If this is the case, we will inform you during your application.
For further information on the impact you should speak with an independent debt advice agency who can give you support and advice.
Details of free money advice agencies (PDF, 29KB)
