Mortgage Payment Holidays

Temporary change in your circumstances? A mortgage payment holiday could help...

A mortgage payment is in effect an agreement between you and your lender to halt your mortgage repayments for an agreed amount of time. There are many mortgage deals that offer payment holidays, so the key to finding the right one is to use consumer tools such as our FREE mortgage tables, below:

 

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

1.41%

Reverts to 3.75%

2

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term.
Fixed

1.42%

Reverts to 3.75%

2

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term.
Fixed

1.38%

Reverts to 4.54%

2

Years

65%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Tracker

1.30%

Reverts to 4.54%

2

Years

70%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Tracker

1.32%

Reverts to 4.54%

2

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Fixed

1.42%

Reverts to 4.54%

2

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Tracker

1.59%

Reverts to 3.75%

2

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Fixed

1.59%

Reverts to 4.70%

2

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Tracker

1.82%

Reverts to 3.75%

2

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Fixed

1.84%

Reverts to 4.54%

5

Years

65%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term.
Fixed

2.12%

Reverts to 3.75%

5

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.30% APRC. This is the cost of the mortgage over the full term.
Fixed

2.12%

Reverts to 3.75%

5

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.30% APRC. This is the cost of the mortgage over the full term.
Fixed

1.99%

Reverts to 4.54%

5

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Fixed

2.49%

Reverts to 4.70%

2

Years

80%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

2.88%

Reverts to 3.75%

2

Years

85%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

2.64%

Reverts to 3.69%

10

Years

60%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.00% APRC. This is the cost of the mortgage over the full term.
Fixed

2.94%

Reverts to 3.69%

10

Years

80%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.20% APRC. This is the cost of the mortgage over the full term.
Fixed

4.09%

Reverts to 3.75%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

1.58%

Reverts to 4.24%

3

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term.
Fixed

1.93%

Reverts to 4.24%

5

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.40% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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It should be remembered however, that providers who do offer mortgage payment holiday will tend to do so only if certain conditions can be met by the customers. The following are some examples of conditions in which a provider may allow a payment holiday:

 

  • Maternity leave
  • Change of employment
  • Temporary debt problems
  • Children's Education
  • Exceptional or Unforeseen Expenditure
  • Wedding Expenses


In order to be eligible, most providers will require that customers have at least of been reliably repaying their mortgage for a set period of time without any issues. If a requested payment holiday is successful, the customer may be able to take up to a year off from making any of their mortgage repayments.

 

If you are struggling to balance your financial commitments, a mortgage payment holiday may provide you with valuable breathing space to help you set your affairs in order. The cost of making these regular mortgage repayments can be extremely costly for people in some situations, and a repayment break may allow customers to put money towards other expenses.


Borrowers with a high level of debt are often attracted by mortgages with payment holidays. More flexible agreements may also allow customers to overpay on their mortgages if their circumstances allow it.


It is an unfortunate fact that many mortgage contracts will have harsh financial penalties for customers who are late with their repayments. However, by shopping around for a more flexible mortgage, customers may be afforded considerably more freedom where their mortgage is concerned.


To help find a suitably flexible agreement, it is recommended to shop around as much as possible using our comparison tables to find the best mortgage deal available. 

Top 5 Mortgage Deals

Find a selection below of top mortgage deals based on "loan to value" or LTV - so if you have a 25% deposit or 25% equity in your home click on the 75% LTV tab for latest deals

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

1.14%

Reverts to 3.69%

2

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.40% APRC. This is the cost of the mortgage over the full term.
Fixed

1.41%

Reverts to 3.75%

2

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term.
Fixed

1.44%

Reverts to 3.69%

3

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.20% APRC. This is the cost of the mortgage over the full term.
Tracker

1.59%

Reverts to 3.75%

2

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Lifetime Tracker

2.09%

Life of the mortgage

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 2.20% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker