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Payment holiday ending – short term options

Apply for a further payment holiday or to temporarily reduce your payments for up to three months

See if you’re eligible and apply for the more short-term support after your payment holidays – and find out how a further payment holiday extension or temporarily reducing your payments will affect your mortgage. 

Important – before you apply

This information is for you if you’ve had one period of temporary support, and you need help as it comes to an end. If you haven’t had any temporary support, and you need help with your mortgage, please take a look at these FAQs.

If you’ve had two or more periods of temporary support, please read these FAQs instead.

If your next payment’s due in the next nine working days, your payment holiday will start on the following month’s payment date and you’ll need to make this month’s payment in full. If this isn’t possible, please call us on 0333 202 7407 (Monday to Thursday 8am-8pm, Friday 8am-6pm and Saturday 9am-1pm) as soon as you can.

Before you apply, please read the questions and answers below carefully. You’ll find out if taking a further payment holiday or reducing your payments is right for you, the impact it will have on your future mortgage repayments, if you’re eligible and how to apply.

If you decide a payment holiday isn’t right for you, we’ll talk to you to help find the best solution for your circumstances.

You can take periods of support flexibly at any time up to and including 31 March 2021 (until you reach the maximum of six months).

After 31 March, you can only ask for more support if you’re already receiving temporary mortgage support.

Any temporary mortgage support we offer after 31 March will stop on 31 July, even if you haven’t received the maximum of six months.

What is a further mortgage payment holiday?

Taking a further payment holiday continues your temporary break from mortgage payments to help you get through difficulties caused by the coronavirus situation. While it’ll let you reduce your monthly outgoings in the short term, your mortgage will cost more overall. Before applying, please read ‘How could this affect my future mortgage payments?’ below for illustrative examples.

A further payment holiday won’t be recorded on your credit file, so it won’t affect your credit score, but lenders might take it into account when making future lending decisions.

What are temporarily reduced payments?

Making reduced payments to your mortgage is a temporary measure intended to help you if coronavirus is still affecting your circumstances after your payment holiday, and you can’t yet return to making your full monthly repayments. It’s generally in your best interest if you can make some payments towards your mortgage without affecting your essential living and work travel expenses.

Before applying, please read ‘How could this affect my future mortgage payments?’ below for illustrative examples.

Reduced payments won’t be recorded on your credit file, so won’t affect your credit score, but lenders might take them into account when making future lending decisions.

My payment holiday has ended; what support is now available to me?

If your payment holiday has ended and your new monthly payments have started again, we can still help. Though we can’t offer you another payment holiday, we might be able to set up a new payment arrangement for you if you still need support. It’s important you bear in mind that unlike the temporary support you’ve had so far, any payment arrangements you agree to going forward could be reported to credit reference agencies, which might affect your ability to get credit in future. Making further payment arrangements could also increase your mortgage balance, and how much you have to repay.

Talking to us about your financial situation, and any issues you have that might affect your payments, makes it easier for us to work out how best to manage your mortgage going forward. If you can afford to make any payments towards your mortgage, it’s generally in your best interest to do so.

Please call us on 0333 202 74071 so we can explain your options. Lines are open from 8am to 8pm, Monday to Thursday, 8am to 6pm on Friday, and 9am to 1pm on Saturday. To speed things up, please fill in this income and expenditure form before you call.

Am I eligible for a further mortgage payment holiday or temporarily reduced payments?

Further payment holidays and temporarily reduced payments are available if you have a mortgage for your home or a buy-to-let property, and your income is being affected by coronavirus.

How do I ask for a further payment holiday or reduced payments if I have more than one mortgage account?

You’ll need to apply separately for each account. It’s important to consider what you can afford to pay and how to apply this across all of your accounts. For example, you might want to think about factors such as your different mortgage account interest rates and balances. You could offer to pay something towards some accounts and apply for a payment holiday on others, to make the most of what you can afford and minimise the interest you’re charged.

What would be the impact of a further payment holiday or temporarily-reduced payments?

Our online calculator is a helpful tool to give you an estimate of the impact on your mortgage. Click this link to use it, which will take you to the site that’s hosting it for us. You can come back here when you’ve got your results.

For more details about your existing mortgage – such as your monthly payments, balance, remaining term and interest rate – check your mortgage statement, log in to your Barclays app or Online Banking and select the mortgage section. You can also call us1 on 0333 202 7580.

For more help, please read ‘Where can I find out more information on support during this time?’ below.

How do I work out what I can afford?

Before you think about how much you can afford to pay towards your mortgage, it’s important to consider your other monthly commitments.

These can include essential living costs, like household bills (for example, council tax, utilities, phone), travel expenses (for example, commuting, fuel), and other commitments (for example, loans, credit cards, overdrafts).

For most people, it makes sense to pay your essential expenses and priority debts first, before you pay anything that’s lower priority. You can use our form [PDF, 2.9MB] to work this out.

Money Advice Service also have a guide on how to prioritise your debts. If you’re struggling to pay all your debts, you should think about contacting the companies you owe to discuss your repayments.

If you need more help, please read ‘Where can I find out more information on support during this time?’ below.

Will I be charged interest on my mortgage during my payment holiday or while I’m making reduced payments?

Yes, we’ll still charge interest on your mortgage, and apply it to your balance monthly. Please read ‘How could this affect my future mortgage payments?’ below for illustrative examples.

How could this affect my future mortgage payments?

In addition to any previous payment holidays you’ve taken, during a further payment holiday or period of reduced payments, we’ll again charge interest on the full amount you owe, and add this interest to the balance each month. If the payment you’re making doesn’t fully cover the interest due each month, we’ll add the difference between the interest due and the amount you’re paying to your mortgage, which will increase the amount you owe.

This means the total amount of interest you’ll pay over the full term of the mortgage will be higher and you’ll pay more for your mortgage overall than you would have done otherwise.

When the payment holiday or temporarily reduced payments end, we’ll increase your monthly payment amount unless you agree another option with us. This means you can make up the payments you deferred over the rest of your mortgage term. It also means you’ll pay interest on the deferred payments over the remainder of the mortgage term.

Taking a payment holiday or temporarily reducing your payments won’t affect your current mortgage’s terms and conditions.

If you can afford to make any payment towards your mortgage, it’s generally in your best interest to do so.

Here’s an example of how a payment holiday could affect your repayments after the holiday ends.

Outstanding Mortgage Balance: £100,000

Initial payment holiday for 3 months

Short-term support

Payment before 1st holiday

Payment after 1st holiday

Increase in monthly payments

Total borrowing cost

Increase in total borrowing cost

Payment Holiday

£522.63

£530.92

£8.29

£134,454.61

£531.98

Further payment holiday for 3 months

Short-term support

Payment before 2nd holiday

Payment after 2nd

Increase in monthly payments

Total borrowing cost

Increase in total borrowing cost

Payment Holiday

£530.92

£539.43

£8.51

£134,991.00

£536.39

Further support – temporarily reduced payments for 3 months

Payment reduction for 3 months

Payment during 2nd holiday

Payment after 2nd holiday

Increase in monthly payments

Total borrowing cost

Increase in total borrowing cost

75% of payment

£398.19

£533.04

£2.12

£134,588.71

£134.01

50% of payment

£265.46

£535.17

£4.25

£134,722.81

£268.20

25% of payment

£132.73

£537.30

£6.38

£134,856.90

£402.29

*These amounts are only a guide and are based on the assumption that your interest rate and mortgage term will remain the same after the payment holiday and are not due to change under your existing terms and conditions. We’ll send you revised payment details before the end of your payment holiday. All payments in these examples are based on a repayment mortgage of £100,000 payable over 240 months.

If you’ve already had a repayment holiday and this application is for a further repayment holiday or to temporarily reduce your payments, the representative examples above will be on top of your increased payments from your first repayment holiday. The impact of that first repayment holiday will be clearly shown to you in the letter we send you when you approach its end.

For more help, please read ‘Where can I find out more information on support during this time?’ below.

Our online calculator is a helpful tool to give you an estimate of the impact on your mortgage. Click this link to use it, which will take you to the site that’s hosting it for us. You can come back here when you’ve got your results.

Can I also switch to a different rate during a payment holiday?

Yes – you can submit an application to switch during a payment holiday. If you’ve already applied for a rate switch that hasn’t taken effect yet, that’s OK too. Rate switches won’t affect the terms of your payment holiday.

My mortgage is approaching the end of its term or its term has already ended – can I take a payment holiday?

  • If your mortgage term ends within three months or has just ended, and you need help with making payments, call us on 0333 202 7416
  • If you have an interest-only mortgage and have deferred paying back the outstanding capital until 31 October 2021, this will continue when your temporary support ends. If you think you might struggle to restart your payments when your temporary support ends, please call us on 0333 202 7416

Lines are open Monday to Thursday 8am to 8pm, Friday 8am to 6pm and Saturday 9am to 1pm.

I’m a landlord – am I eligible for a further payment holiday or temporarily reduced payments if my tenants’ circumstances have changed or are expected to change?

Yes – we offer further payment holidays or temporarily reduced payments in this case on the understanding that you pass this relief on to tenants who are struggling to pay their rent. If you’re applying because your tenants have been affected by coronavirus, please select ‘Yes’ to the question ‘Has your household income been affected by the coronavirus situation?’ on our online form.

How do I apply if I have a joint mortgage?

We’ll accept a request from anyone named on the mortgage. We’ll only send confirmation to the person who’s made that request though. If we receive two applications for the same account, we’ll process the one we receive first and reject the second.

How do I apply for a further payment holiday or temporarily reduced payments?

We’ll write to you in plenty of time before your payment holiday finishes, so you don’t need to do anything until then. Once you receive your letter, if you want to apply for a further three months, the quickest way is to fill in our online form – but please make sure you’ve read the answers above before deciding to do this.

If you’d like to apply for less than three months or start making full monthly repayments sooner than you thought, please call us on 0333 202 7504*.

It can take up to nine working days to process them. We’ll send you a text message once we’ve processed your request.

When applying online to extend your payment holiday or reduce your payments, we'll ask you about how coronavirus is still affecting you. You’ll also need to have the following to hand:

  • Payment holiday ID from your letter (14 digits starting PH)
  • A mobile phone number to use the one-time passcode process
  • A valid email address for us to keep you informed about your application

*If you aren’t comfortable applying online or if you haven't had a payment holiday ID in your letter, call us on 0333 202 7504. We’re open from 8am to 8pm, Monday to Thursday, 8am to 6pm on Fridays and 9am to 1pm on Saturdays.

If you can afford to make any payment towards your mortgage, it’s generally in your best interest to do so.

Where can I find out more information on support during this time?

Find practical advice to help you tackle money troubles and debt, improve your financial habits, and see how we can offer you support. 

For independent, advice, not provided by us:

Money Advice Service has a dedicated page for coronavirus support. 

FCA has also shared some information on how to deal with financial difficulties during the coronavirus situation.

Money Supermarket has a dedicated page to show how a mortgage payment holiday could affect your future repayments.

If you’d like independent advice on your financial situation, you can get this free from the debt-counselling organisations below:

StepChange Debt Charity – call them on 0800 138 1111 or visit stepchange.org

National Debtline – if you live in England, Wales or Scotland, call 0808 808 4000 or visit nationaldebtline.org

Citizens Advice – visit your local branch or go to adviceguide.org.uk