With the news from the Government on the 17th March regarding their help and support to those who are most vulnerable, we wanted to give you a breakdown of what you need to know regarding Mortgage Payment Holidays.

  • You will not be considered to be in arrears during the period of an agreed mortgage payment holiday, and there will be no impact on your credit file.
  • However your credit score may be negatively affected if you miss a payment and haven’t already applied for a mortgage holiday.
  • If you are already in arrears when you approach your lender then they will look at what further assistance they can offer however it is best to apply before this situation arises
  • The payment holiday period can last for up to 3 months. If you have overpaid on your mortgage in the past, you may be able to extend this period. Each lender will be different in this respect.
  • Payments to both capital and interest are suspended during the agreed period and interest will continue to accrue during the holiday period. Payments are recalculated at the end of the holiday period to repay the new balance over the remaining term. This will result in higher monthly repayments and a larger mortgage.
  • Each lender has set up a dedicated page on their website about how to apply for a mortgage holiday, including dedicated help lines, webchats and email inboxes. They are already experiencing a high level of requests so to allow them to reach the most vulnerable, you are encouraged to only apply if it is really necessary.

If you need any further advice, whether you are an existing or new customer, you can contact our dedicated Mortgage department.  During these difficult times, we ask that you use email as your first method of communication.  Please email mortgageteam@snfinancial.co.uk and one of our qualified advisers will contact you.