FAQs


We’ve pulled together a list of our most frequently asked questions which may provide the information you need (as of 21st August 2020).

Mortgage payment breaks

Payment break

  • What options are available to me if I’m experiencing financial difficulty because of COVID-19?
    If you are experiencing short term difficulty due to COVID-19, you can apply for a payment break to reduce or stop your monthly mortgage payments for up to 3 months. If you’re still experiencing difficulties at the end of your payment break, you can request a further break of up to 3 months. You can defer your payments for up to 6 months.
     
    You will still owe the deferred amount and the interest on your mortgage still accrues during a payment break. There may be other options which are more suitable for you.
     
    Alternatively, if you expect your situation to affect you longer term or if you have arrears on your mortgage account, we have other options that may be more suitable to your circumstances. Please call us to discuss how we might be able to help you.
     
    There are several impartial organisations that provide free, confidential advice and information. Please click here for a list of external organisations where you may be able to get further support.
     
    The payment breaks we offer align with the guidelines set out within each relevant jurisdiction. Within the UK we’re following UK regulatory guidelines by offering full or partial payment breaks of up to 3 months. Outside of the UK this may differ, so it’s important to check what options you have available to you.
  • Can I have a payment break?
    We will be able to offer you a payment break up to 3 months if you are experiencing or likely to experience short term issues with your finances as a result of COVID-19. You can apply for a payment break by completing a payment break form.
     
    Please note that by submitting an application you are confirming that all parties to the mortgage consent to a payment break.
     
    You’ll need to catch up on the deferred payments after the payment break; we’ll contact you nearer the time to discuss your options.
     
    Please call us if your payment is due within the next 7 days and you need this support immediately.
  • What is the difference between a full and partial payment break?
    A full payment break allows you to put a complete stop on your mortgage payments for the agreed period. The amount you would normally pay for this period and any interested charged will be automatically added to the balance of your mortgage. Your monthly payments and the total amount of interest you pay over the term of the mortgage will increase.
     
    A partial payment break allows you to pay a smaller portion of your monthly mortgage payment for the agreed period. The partial payments you make during the break will reduce the overall amount you defer. Any amount or interest not covered by your payment will be automatically added to the mortgage account. Your monthly payments and the total amount of interest you pay over the term of the mortgage will increase. However, a partial payment break will cost less than a full payment break.
     
    You can find examples of the associated costs below under each of the ‘How much will my monthly payment change…?” questions.
     
    Both options are temporary measures to assist you if you are having financial difficulty due to COVID-19. If you can make your monthly payments in full, you should do so. A payment break may not be suitable if you are experiencing long term difficulty or are in arrears. If this is the case, please call us to discuss how we might be able to help you.
     
    Taking a payment break due to COVID-19 will not negatively affect your credit file. However, there are other ways lenders can see you’ve taken a payment break, such as the balance of your mortgage over this period or information from your bank account. They may take this into account when assessing future applications.
  • Is a payment break right for me?
    It’s important to remember that a payment break is a temporary break from your mortgage payments to help you through these uncertain times. To make sure it’s the right thing for your current situation, there are a few things you need to consider before applying:
     

    1. At the end of the payment break we will add the deferred payments to your mortgage and then your monthly payment will increase. The total amount of interest you pay over the term of the mortgage will also
      increase.
       
      However, there are other options available to you to repay the missed payments, for example by making a lump sum payment.
       
      We will write to you with more details near the end of your payment break. You will then have the opportunity to agree how to catch up on the deferred payments.
    2. Currently, we offer up to a 3 month payment break. The most appropriate time for you to have a payment break will depend on your personal circumstances.
    3. If you currently have a payment shortfall (arrears) on your mortgage, please call us so we can discuss your options.
  • I am a Buy to Let landlord, can I have a payment break?
    If you are a Buy to Let landlord, you will need to self-certify that your tenant’s income has been impacted by COVID-19. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.
  • How will my monthly payment change if I take a full payment break?
    At the end of your payment break, we’ll write to you to confirm the amount you owe. We’ll automatically add this amount to your mortgage account and confirm your new monthly payment amount. The letter will also include information on other repayment options available to you.
     
    Here are a few examples to show the impact of taking a 3 month payment break making no payments, for a repayment and an interest only mortgage*.
     
    Please remember that interest is still charged at the current rate on your outstanding mortgage balance during the payment break.
     
    Repayment Mortgage
     
    We’ll automatically add the deferred amount to your mortgage balance and recalculate your payments. This will increase your monthly payment and you’ll pay more interest overall.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £707 £795
    New monthly payment after a 3 month payment break £728 £808
    Monthly increase £21 £13
    Total amount to pay without a payment break £84,842 £190,764
    Total amount to pay with a 3 month payment break £85,119 £191,411

     
    Interest only mortgage
    The interest you defer during the payment break will be added onto your mortgage balance. This means you’ll be charged interest on a higher balance for the rest of your mortgage term. You’ll also need to make sure the repayment strategy you have in place is enough to repay the higher balance when your mortgage ends.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £156 £312
    New monthly payment after a 3 month payment break £157 £314
    Monthly increase £1 £2
    Total amount to pay without a payment break £93,750 £225,000
    Total amount to pay with a 3 month payment break £93,866 £225,466

     
    * These examples are for illustrative purposes only and we’ve made the following assumptions:

    • All interest rates are of equal length
    • Interest is calculated and added monthly
    • Only one main account (no additional borrowing)
    • There is no change in interest rate that would recalculate the monthly payments
    • There will not be any changes to the mortgage which would result in a recalculation of the monthly payment e.g. changes to the product term, type (i.e. interest only to repayment) or change of borrowers.
    • One 3 month payment break taken. No payments were made during this period.
  • How much will my payment change if I make partial payments during my payment break?
    At the end of your payment break, we’ll write to you to confirm the amount you owe. We’ll automatically add this amount to your mortgage account and confirm your new monthly payment amount. The letter will also include information on other repayment options available to you.
     
    The partial payments you make during the break will reduce the overall amount you defer.
     
    Here are a few examples to show the impact of taking a 3 month payment break making partial payments half the amount of your usual mortgage payment, for a repayment and an interest only mortgage*.
     
    Please remember that interest is still charged at the current rate on your outstanding mortgage balance during the payment break.
     
    Repayment Mortgage
     
    We’ll automatically add the deferred amount to your mortgage balance and recalculate your payments. This will increase your monthly payment and you’ll pay more interest overall.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £707 £795
    New monthly payment after 3 month partial payment of 50% payments £717 £801
    Monthly increase £32 £19
    Total amount to pay without a payment break £84,842 £190,764
    Total amount to pay with a 3 month partial payment of 50% payments £84,981 £191,089

     
    Interest Only Mortgage
     
    The interest you defer during the payment break will be added onto your mortgage balance. This means you’ll be charged interest on a higher balance for the rest of your mortgage term. You’ll also need to make sure the repayment strategy you have in place is enough to repay the higher balance when your mortgage ends.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £156 £312
    New monthly payment after 3 month partial payment of 50% payments £156.75 £313.50
    Monthly increase £0.75 £1.50
    Total amount to pay without a payment break £93,750 £225,000
    Total amount to pay with a 3 month partial payment of 50% payments £93,808 £225,233

     
    * These examples are for illustrative purposes only and we’ve made the following assumptions:

    • All interest rates are of equal length
    • Interest is calculated and added monthly
    • Only one main account (no additional borrowing)
    • There is no change in interest rate that would recalculate the monthly payments
    • There will not be any changes to the mortgage which would result in a recalculation of the monthly payment e.g. changes to the product term, type (i.e. interest only to repayment) or change of borrowers.
    • One 3 month payment break taken with payments made at 50% of the usual monthly payment.
  • How can I repay the money I owe from the payment break?
    At the end of the payment break we’ll automatically add the deferred payments to your mortgage so they’re repaid by the end of the mortgage term. There are other options available including:
     

    • Repaying in full at the end of the payment break
    • Repaying the deferred amount over a shorter period (rather than the remainder of the term)
    • Extending the mortgage term (repayment mortgages only – if your mortgage is on part repayment and part interest only basis, please get in touch on 0800 169 9722* if you want to discuss this option)

     
    Repaying your deferred payments over an agreed period will increase your standard monthly payment.
     
    We’ll write to you near the end of your payment break with more details. The option you choose will depend on your individual circumstances.

  • I need a payment break but my payment is due soon, what should I do?
    If your payment is due within the next 4 days and you are unable to maintain the payment, you should cancel your Direct Debit as we may not have time to process your application. We will then process your application to include the payment missed. Your credit file won’t be affected when you cancel your Direct Debit.
     
    If you’re able to make the payment due, we can start the payment break from your next payment date.
  • When will I know I’m getting a payment break?
    We’re prioritising requests where the payment is due within the next seven days. We’ll be in touch once we’ve dealt with your request. Please contact us if you have not heard from us and your payment is now due.
  • I was already in arrears before COVID-19 and now I am in greater financial difficulty, what should I do?
    A payment break is available for customers experiencing short term financial difficulties caused by COVID-19 but we also offer a range of other measures to support you. Please call us to discuss what options are available to you.
 
Further payment break
 
  • Can I extend my payment break?
    If you are able to resume your mortgage payments, either partially or in full, it is in your best interests to do so.
     
    If you’re still experiencing difficulties at the end of your payment break, you can request a further break of up to 3 months. You can defer your payments for up to 6 months.
     
    We’ll write to you near the end of your current payment break to explain the options available to repay the deferred payments.
     
    Once you’ve received your letter, you can request one further payment break by completing a payment break extension request. By submitting the request, you are confirming that all parties to the mortgage consent to the additional payment break.
     
    If you haven’t deferred your payments for a total of 6 months, but have already extended your payment break once, please call us on 0800 169 9722*.
  • How do I apply for a payment break extension?
    If you’re still experiencing difficulties at the end of your payment break, you can request a further break of up to 3 months. You can defer your payments for up to 6 months.
     
    Please remember the balance and interest charged during all payment breaks will be added to your mortgage account and may cost you more in the long run. If you can afford to make your mortgage payment either partially or in full, you should do so.
     
    We’ll send you a letter detailing the repayment options available at the end of your initial payment break. When you receive your letter, please apply to extend your payment break if you’re unable to resume your normal monthly payment(s). You have until 31st March 2021 to apply.
     
    If you haven’t deferred your payments for a total of 6 months, but have already extended your payment break once, please call us on 0800 169 9722*.
  • What will be the impact of extending my payment break?
    If you can afford to make your mortgage payment either partially or in full, you should do so.
     
    The amount you owe and any interest charged will be added to your mortgage account. This will increase your monthly payments once the payment break ends. A longer payment break will increase the amount that you’re deferring. You’ll need to make sure you can afford the increased payment as a result.
     
    There will be no impact to your credit file if you extend your payment break. But there are other ways lenders can see you’ve taken a payment break, such as the balance of your mortgage over this period or information from your bank account. They may take this into account when assessing future applications.
  • How much will my monthly payment increase by if I take a full payment break extension?
    At the end of your intial payment break, we’ll write to you to confirm the amount you owe. We’ll automatically add this amount to your mortgage account and confirm your new monthly payment amount. The letter will also include information on other repayment options available to you.
     
    Here are a few examples to show the impact of taking a further 3 month payment break, in addition to the original 3 month payment break, for a repayment and an interest only mortgage*.
     
    Please remember that interest is still charged at the current rate on your outstanding mortgage balance during the payment break.
     
    Repayment Mortgage
     
    We’ll automatically add the deferred amount to your mortgage balance and recalculate your payments. This will increase your monthly payment and you’ll pay more interest overall.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £707 £795
    New monthly payment after a 6 month payment break £749 £821
    Monthly increase £42 £26
    Total amount to pay without a payment break £84,842 £190,764
    Total amount to pay with a 6 month payment break £85,396 £192,058

     
    Interest Only Mortgage
     
    The interest you defer during each payment break will be added onto your mortgage balance. This means you’ll be charged interest on a higher balance for the rest of your mortgage term. You’ll also need to make sure the repayment strategy you have in place is enough to repay the higher balance when your mortgage ends.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £156 £312
    New monthly payment after a 6 month payment break £158 £316
    Monthly increase £2 £4
    Total amount to pay without a payment break £93,750 £225,000
    Total amount to pay with a 6 month payment break £93,978 £225,929

     
    * These examples are for illustrative purposes only and we’ve made the following assumptions:

    • All interest rates are of equal length
    • Interest is calculated and added monthly
    • Only one main account (no additional borrowing)
    • There is no change in interest rate that would recalculate the monthly payments
    • There will not be any changes to the mortgage which would result in a recalculation of the monthly payment e.g. changes to the product term, type (i.e. interest only to repayment) or change of borrowers.
    • Two 3 month payment breaks taken, totalling 6 months. No payments were made during this period.
  • How will my payment change if I make partial payments during the payment break extension?
    At the end of your initial payment break, we’ll write to you to confirm the amount you owe. We’ll automatically add this amount to your mortgage account and confirm your new monthly payment amount. The letter will also include information on other repayment options available to you.
     
    The partial payments you make during the break will reduce the overall amount you defer.
     
    Here are a few examples to show the impact of taking a 3 month payment break extension making partial payments half the amount of your usual mortgage payment, in addition to the original 3 month payment break, for a repayment and an interest only mortgage*.
     
    Please remember that interest is still charged at the current rate on your outstanding mortgage balance during the payment break extension.
     
    Repayment Mortgage
     
    We’ll automatically add the deferred amount to your mortgage balance and recalculate your payments. This will increase your monthly payment and you’ll pay more interest overall.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £707 £795
    New monthly payment after 3 month full payment break followed by a 3 month payment break extension of 50% payments £739 £814
    Monthly increase £32 £19
    Total amount to pay without a payment break £84,842 £190,764
    Total amount to pay with a 6 month payment break £85,261 £191,738

     
    Interest Only Mortgage
     
    The interest you defer during each payment break will be added onto your mortgage balance. This means you’ll be charged interest on a higher balance for the rest of your mortgage term. You’ll also need to make sure the repayment strategy you have in place is enough to repay the higher balance when your mortgage ends.
     

    Mortgage balance £75,000 £150,000
    Interest rate 2.50% 2.50%
    Mortgage term 10 years 20 years
    Current monthly payment £156 £312
    New monthly payment after a 3 month payment break followed by a 3 month payment break extension of 50% payments £157.75 £315
    Monthly increase £1.75 £3
    Total amount to pay without a payment break £93,750 £225,000
    Total amount to pay with a 3 month payment break followed by a 3 month payment break extension of 50% payments. £93,922 £225,699

     
    * These examples are for illustrative purposes only and we’ve made the following assumptions:

    • All interest rates are of equal length
    • Interest is calculated and added monthly
    • Only one main account (no additional borrowing)
    • There is no change in interest rate that would recalculate the monthly payments
    • There will not be any changes to the mortgage which would result in a recalculation of the monthly payment e.g. changes to the product term, type (i.e. interest only to repayment) or change of borrowers.
    • Two payment breaks taken, totalling 6 months. An initial payment break for 3 months with no payments made, followed by a further payment break of 3 months with payments made at 50% of the usual monthly payment.
  • Can I have a payment break extension if my financial difficulty is not related to COVID-19?
    If your financial difficulty isn’t related to COVID-19, please call us. We’ll work with you to understand your circumstances and determine the most appropriate option.
  • If I am in arrears or expect to have long term financial difficulties can I have a payment break extension?
    We can consider a payment break, but there may be other options more suitable to your situation. Please call us to discuss how we might be able to help you.
  • I have had a payment break extension but I am still experiencing issues with my finances. Can you help?
    If you have already extended your payment break or your extension is due to end soon, please complete and send us an income and expenditure form. When we receive your form, one of our team will be in touch. They’ll discuss your circumstances and what options are most suitable to your situation. Alternatively you can give us a call.
  • If my initial payment break is due to end after 31st March 2021, could I apply for an extension?
    After 31st March, you will be able to extend your payment break up to 31st July 2021, provided the payment break runs consecutively.
    You can only apply for an extension if you’ve received a letter from us confirming what your next steps are. This will be sent before your payments are due to start again.

 
I am not currently impacted but expect to be

 
End of payment break

  • Do I need to contact you at the end of the payment break?
    We’ll write before your payment break ends to explain what options you have to repay the deferred payments. Please give us a call if you haven’t received our letter and it’s less than 5 days before you’re due to start paying again.
  • What if I still can't afford the payments when they are due to start again?
    We’ll write to you when you’re due to start making payments again. If you’re unable to resume your monthly payment(s) when you receive your letter, please apply to extend your payment break. You can apply for an extension once, up to 3 months. You must apply by 31st March 2021.
     
    We’ll write to you again at the end of your extended payment break. If you’re still experiencing financial difficulty, please complete and send us an income and expenditure form. Alternatively, call us to talk through how we can continue to support you.
     
    It’s important you keep in touch with us as fees may be applied to your account if payments aren’t made, and your credit file may be negatively impacted.
  • Where can I find extra help?
    You can get free, confidential and impartial advice about your finances from:
     

    These organisations provide help and guidance as well as information about the different options available to you. If you’re already in touch with an organisation that is giving you financial advice, please let us know and we can deal with them directly.
     
    You can also refer to the consumer information provided by the Financial Conduct Authority which provides contact details for other sources of free and impartial financial help.

 
Mortgage payments

 
Repaying my interest only mortgage
  • Can I delay repayment of my interest only residential mortgage which is due to end soon?
    If you’re experiencing financial difficulty due to COVID-19 you may apply to delay final repayment of the mortgage balance until 31st October 2021.
     
    To be eligible for this option you must be up to date with your payments and you must be able to continue to maintain your regular monthly payments until your mortgage is paid off, except where a payment break has been agreed.
     
    Any delay in repayment will increase the amount of interest you pay and may present further risks, for example house prices falling or your repayment strategy reducing in value. If you choose to delay repayment of your mortgage, your capital balance will not reduce during this time.
     
    There will be no impact to your credit file if this option is chosen and your payments are maintained or you are on an agreed payment break.
    To find out more please call us on 0800 169 9712*.
     
    If your repayment strategy has not been affected by COVID-19, you are expected to repay the balance by the term end date. However if you are worried that your repayment strategy is not sufficient to repay your balance in full by this date, please call us as soon as possible on 0800 169 9712* so we can talk to you about your options.
     

    *Lines are open Monday to Friday 9am – 5pm
 
Making changes to your mortgage whilst on a payment break

 
Mortgage Offer Extensions

 
Mortgage Applications for furloughed customers

  • Can I apply for a mortgage if I am currently on the furlough scheme?

    Yes, we’re accepting applications if you’re currently furloughed and have a confirmed return to work date. We’ll ask you to provide evidence of this during the application process. If you don’t have a return date we will accept a joint application, however your income won’t be included.

    Was this helpful?
  • How will my income be assessed if I’ve been furloughed?

    Where your return to work date has been confirmed, we’ll include:

    • 100% of your basic salary upon return (this must take into account any reduction in salary that may have been agreed)

    We won’t include:

    • Any non-guaranteed income such as bonus/overtime/commission
    • Any income if you are currently furloughed, with no confirmed return to work date.
    Was this helpful?