Coronavirus: Mortgage payment break

Last updated 17 June 2020

We understand that Coronavirus (COVID-19) is creating challenging times and you may be worried about money.

What is a mortgage payment break?

If your tenant is struggling to pay their rent or you’re struggling to make your monthly mortgage payments because of coronavirus, we can help you by offering a 3-month payment break.

A mortgage payment break is a temporary break from paying your full mortgage payments.

You’ll be able to apply to either:

  • Take a full break from making your monthly mortgage payments; or
  • Make reduced payments during your payment break.

You’ll be able to take a mortgage break for up to three months.

If you’re thinking about a mortgage payment break, it’s important to note the following:

  • Interest will continue to build at your usual interest rate during the payment break. This means the total amount of interest you’ll pay over the term of your mortgage will go up, increasing the overall cost of your mortgage.
  • Taking a payment break won't affect your credit rating. But lenders may ask about your payment history and take this into account when making future lending decisions.

If you’ve already taken a mortgage payment holiday, you can still apply for a mortgage payment break.

If you're a landlord, we encourage you to pass on any payment breaks to tenants in need of a rental break.

What impact will a payment break have on my future monthly payments?

A mortgage payment break is a temporary break from your mortgage payments, to help you through these uncertain times.

Remember, your interest will continue to build during the payment break. So, when your payments start up again, your balance will be higher.

We’ll work out your new monthly payment based on your new balance. It's likely to be slightly higher than before. We’ll give you an idea of what your new monthly payment amount might be during the application.

If you would like an estimate of the impact of a mortgage payment break then you may find this independently published mortgage payment break calculator useful.

You won’t see UCB Home Loans listed on this website. Please pick 'Nationwide Building Society' from the options.

You’ll be directed to an external website where you’ll get a representative illustration of what your future payments will look like. Your actual payments and what you will repay over the term of the mortgage may differ.

Is a mortgage payment break the right option for me?

There are a number of ways to get help with your mortgage payments. Some of these may be more suitable for your situation than a payment break. If you’re not sure if a payment break is the right option for you, you should carefully consider all options before applying.

For more advice on taking a mortgage payment break, visit the Money Advice Service.

You might also find the following information useful when trying to decide on the best option for your situation:

You can also access free independent debt advice through:

Visit our Home Support Package page for the full range of options

We will continue to offer mortgage payment breaks until at least 31 October. This is in line with government and regulatory guidelines.

If you’re not struggling to pay your mortgage because of coronavirus, and you’re still able to make your mortgage payments, then you should continue to do so.

What happens when my mortgage payment break ends?

When your 3-month payment break ends, we’ll write to you to let you know your new monthly payment. We’ll also let you know what options are available to you if you need more help to get back on track with your payments.

What happens after I apply?

Once the payment break has been applied to your account, we’ll write to you confirming the start date.

Where we can, we’ll start your payment break from your next payment. However, if your next payment is due in the next few days, your payment break may start the following month. 

You do not need to cancel your Direct Debit. Keeping it set up makes restarting payments much easier after your payment break.

Please bear with us and avoid calling in to check on progress. Rest assured we have your application and you’ll hear from us soon.

Applying for a payment break

You must have consent from everyone named on the mortgage.

To apply for a payment break or talk to someone about your options, call us on 0800 212 508.

Our lines are open 9am to 5pm Monday to Friday, and 9am to 12pm on Saturdays.

Other questions you might have

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