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Coronavirus: Applying for a mortgage payment holiday or a payment holiday extension

If you’re worried about paying your mortgage while the coronavirus pandemic continues, we are here to help. That’s why we are offering a three-month payment holiday to make it easier if you are struggling.

Already have a payment holiday? If you need extra support, we may be able to offer you an extension of up to the three months. Please click here to request an extension.

What is a mortgage payment holiday?

A payment holiday is an agreement for you to take a break from paying your monthly mortgage payment. The missed payments will need to be paid back, but how and when depends on your individual situation.

Payment holidays do not affect your credit rating, and are available for both residential and buy-to-let mortgages. However, you should know that Metro Bank and other lenders may take into account other information when making future lending decisions, such as information provided by customers or bank account information.

Landlords whose tenants are struggling to pay their rent because of the coronavirus outbreak can use a payment holiday to pause rental payments. 

We do have other options available to help take the pressure off during this tough time, and a payment holiday won’t be the right solution for everyone. For a full assessment of your circumstances and to talk about what could be best for you, call our Mortgage Servicing team on 0345 319 1200.

How do I apply for a mortgage payment holiday?

To get started, click ‘Apply for a mortgage payment holiday’ at the bottom of this page. If you are in arrears on your mortgage, please call us first on 0345 319 1200 – you may still be able to take a payment holiday, but we need to discuss this with you before you can apply.

What happens next?

If we can offer you a payment holiday, we’ll send you a confirmation letter explaining what this means for your mortgage. We’ll also give you an estimate of your new monthly payment. If you think the new amount will be too high, we can discuss other ways of paying the accrued interest and missed payments, such as a lump sum or agree a short extension of your mortgage term. We can also discuss other options that may be more suitable or you can choose to cancel your payment holiday.

During your payment holiday, you will not need to make your normal monthly payments. Interest that would have been paid in that time will still accrue, and will be added to your total mortgage balance. If you have a capital and interest mortgage, the balance will not reduce as it normally would.

At the end of your payment holiday, we will add the payments you have missed to your total loan balance and recalculate your monthly repayments. This means you will pay more over the course of your mortgage. We will send you a letter to explain all of the changes in detail.

We have set out some examples below to make this clearer:


Mortgage balance: £200,000

Current Interest Rate: 4.00%

Mortgage Type: Capital and Interest Repayment

Payment Holiday Period: 3 Months

 

Before Payment Holiday

After Payment Holiday

Mortgage Term left:

15 years

14 years 9 months

Monthly Payment:

£1,474.46

£1,507.65


Mortgage balance: £200,000

Current Interest Rate: 4.00%

Mortgage Type: Interest Only Repayment 

Payment Holiday Period: 3 Months

 

Before Payment Holiday

After Payment Holiday

Mortgage Term left:

15 years

14 years 9 months

Monthly Payment:

£666.67

£673.33


How much your payment increases by will depend on your mortgage balance, remaining term and interest rate.

If you don’t want your monthly payment amount increase, you can pay the accrued interest and missed payments as a lump sum or agree another way to repay this – please get in touch with us to discuss your options.

What is a mortgage payment holiday extension?

If you have already had a mortgage payment holiday and you are not able to resume making your payments, we may be able to offer you an extension of up to three months.

The payment holiday extension works in the same way as your initial payment holiday, but before applying please read through the previous sections on this page to familiarise yourself with this information before applying for an extension.

How do I apply for an extension?

To get started, please click ‘Apply for an extension’ at the bottom of this page. You’ll be taken to our online form, where we’ll ask for some details about your current financial situation.

Before you get started

  • If your next mortgage payment is due within 15 working days, please call us so we can get your application moving more quickly.
  • You'll need your mortgage account number – this starts with 40 and has eight digits, and will be shown on any letters you've had from us about your mortgage.
  • If you have more than one mortgage with us, you will need to complete a separate form for each mortgage.
  • We are busier than usual, so it may take up to 15 working days for your payment holiday or extension to be processed and begin.

Apply for a mortgage payment holiday

Apply for an extension