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Mortgage Payment Holiday – How does it work?

To support those who are having difficulties in making their monthly mortgage payments, a mortgage payment holiday of up to 3 months is being offered by lenders to those who have been impacted by the Coronavirus pandemic. 

How do I apply for a mortgage payment holiday?

You will need to contact your lender directly (this can be done over the phone). Our Mortgage Payment Holidays Guide contains more information on individual lenders’ measures to help during the coronavirus outbreak and how to contact them.

You won’t need to provide evidence or have an affordability test and the decision from your lender should be quick. To be eligible you must be up to date with your normal payments and all parties to the mortgage must agree.

Will the lender charge me a fee if I take a mortgage payment holiday?

You won’t have to pay any fees to set up a mortgage payment holiday. Any unpaid interest will probably still need to be paid back to the lender. When mortgage payment holidays finishes, your monthly payments will be recalculated, and you may see an increase in your monthly payments. You must make up the payments within the fixed or repayment term - this can be done by overpaying on your regular payment.

Will a mortgage payment holiday affect my credit rating?

No, lenders will ensure that the payment holiday does not have a negative impact on your credit record. You should discuss this with your lender when you apply for it.

Should I cancel my mortgage direct debit?

Definitely not. You need to agree a payment holiday with your lender. Cancelling your direct debit is not a payment holiday and will be counted as a missed payment. You should not cancel your direct debit without speaking to your lender first. A missed payment will show in your credit file and may affect your ability to remortgaged or get future credit.

I am a landlord – will I be eligible for a payment holiday for my buy to let mortgage?

Yes, if tenants have lost income because of the impact of the coronavirus outbreak, a payment holiday may be available to their buy-to-let landlords. Contact your lender directly to find out.

Here to help
As ever, we are on hand to help with any queries you may have, so please feel free to contact us on 01242 697821 or email

Download our Mortgage Payment Holidays Guide for more information on lenders’ stance on payment holidays and how to contact them.


  1. MortgagePaymentHolidaysguide.pdf 3/9/2021 8:17:00 AM


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The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

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