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Coronavirus: Applying for a mortgage payment holiday

If you’re worried about paying your mortgage while the coronavirus outbreak continues, we are here to help. That’s why we are offering three-month payment holidays, to make it easier for you to keep up with your payments if you are struggling.

Please note: this is only for new payment holiday applications. For any extensions of current agreed payment holidays, please email us at mortgageservicing@metrobank.plc.uk.

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. 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?

Fill out the online form to get your application started. 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 cancel your payment holiday and discuss other options that may be more suitable.

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 so that you can pay back this additional amount over the full term of your loan. 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


The amount your payment will increase by will depend on your mortgage balance, mortgage term and interest rate.

If you would prefer not to have your monthly payment amount increase, it is also possible to pay the accrued interest and missed payments as a lump sum in one go, or over a period of time – please get in touch with us to discuss these options.

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.
  • You should be aware that because we are busier than usual, it may take up to 15 working days for your payment holiday to take effect.

Mortgage payment holiday application form