Coronavirus and your mortgage: information for homeowners

Last updated: March 2021

If you’re a homeowner and your income has been impacted by coronavirus, you might be concerned about paying your mortgage.

The mortgage payment holiday scheme has been extended a few times – here are the most up-to-date details.

If you haven’t already had a payment holiday

Borrowers who’ve not yet had a payment holiday will be able to request one up until 31 March 2021. Generally, you’ll be given a three-month payment holiday when you first apply, though you’ll be able to resume payments earlier if you don’t need that long.

Bear in mind all payment deferrals need to end by 31 July 2021, so to benefit from the full six months of payment holidays, you’d need to apply for your first payment holiday before your February mortgage payment is due.

If you’ve already had a payment holiday

Borrowers who’ve already had or are on a payment holiday of less than six months will be able to ‘top-up’ to six months of payment holidays in total.

In general, payment holidays are given for three months at a time, so you’ll usually get an initial three-month payment holiday, and then another three months (whether or not these are taken together).

But if up to now you’ve only had, say, a two-month payment holiday, you’d be entitled to another four months to top up to the six-month limit. Lenders can only give you a maximum of three months at a time, though, so you may need to take the three months, then ask for an extension for the final month.

The deadline for applying for new payment holidays is the 31st of March, but if you’re on your first payment holiday and it ends after that date, you’ll be able to extend it – speak to your mortgage provider.

If you’ve already had six months or more of payment holidays but you’re not able to start making mortgage payments again, your lender should still be able to help – speak to them as soon as you can.

How do I request a payment holiday?

The FCA have said that you should wait for your mortgage provider to contact you with information about payment holidays. But if you have a mortgage payment due and you’re worried you won’t be able to pay it, it’s important to let your mortgage provider (and us) know as soon as you can.

What happens after the payment holiday?

If you’re eligible for a mortgage payment holiday, you will have to repay the missed payments later, plus the interest incurred during this time. But you won’t have to pay it back all in one go. Your payment holiday won’t go down as missed payments  on your credit file, but other lenders may still be able to find out about them.

Mortgage lenders are all dealing with this slightly differently. Some lenders have said they will spread the amount owed over the remaining term of your mortgage; others have said they will extend the term of your mortgage so you can catch up. It depends on your mortgage provider and your individual circumstances.

What else do I need to know?

• lenders should not charge any additional fees as a result of the mortgage payment holiday, and they should ensure the mortgage payment holiday has no negative impact on your credit score
• the mortgage payment holiday has also been extended to cover Buy To Let mortgages, to help pay the mortgage if you’re a landlord and your tenants have been affected by coronavirus. You can find out more about support for renters and landlords on the government’s website
• if you need a (further) payment holiday on other bills such as utilities or council tax, contact your local authority and/or utilities providers – different councils and companies are handling this in slightly different ways.
• Whatever your situation, if your income has been affected by coronavirus and you’re worried about making your mortgage payments, your mortgage provider will have options available to help you. The important thing is to speak to them as early as possible.