Repayment options – spreading the cost

If you’ve taken a mortgage payment break, before this ends we’ll let you know all the options available to you to make up the agreed missed payments. One of your options is to spread the cost of the agreed missed payments and interest over a shorter period of 12 or 24 months.

Spreading the cost of your missed payments

We want to make ending your mortgage break as easy as possible and one of your options could be to spread the cost of these agreed missed payments over a shorter period of 12 or 24 months, if this suits your circumstances.

  • Your monthly payments will be higher for  that period and then they’ll go back to what they were before.
  • You’ll pay less interest compared to adding the missed payments to your mortgage.
  • Your remaining mortgage term won’t be impacted. So you’ll pay your mortgage off in the same time.
  • Your letter will include an illustration of the option available to you, which will depend on the length of your payment break.
  • If you do want to choose this repayment option you’ll need to let us know by the cut-off date in your letter or we’ll apply the auto option for you.

How will this impact my monthly payments?

Your monthly payments will be higher for the next 12 months. Then they’ll go back to what they were before.

Here's an example of how this would work:

John’s 3 month payment break

John  took a 3 month payment break. He has a repayment mortgage of £160,000 on an interest rate of 4.00% and has 24 years and 1 month left on his mortgage. His monthly payment before he took a payment break was £863.32 each month.

After a 3 month payment break, John decided to repay the agreed missed payments and interest over 12 months. His new monthly mortgage payments for 12 months were now £1083.85 an increase of £220.53 each month. Overall John will pay £56.40 in additional interest over the 12 month period. After 12 months Johns payments go back to what they were before and his remaining mortgage term won’t change.

What happens next with my payment break?

We'll write to you before the end of your payment break with all of the information you'll need. In that letter we'll let you know:

  • What options are available to you including a personalised example of how each option will impact your mortgage payments
  • We’ll let you know if spreading the cost of the missed payments and interest over 12 or 24 months is an option available to you
  • All other payment options available to you
  • If you want to choose another option, we’ll let you know the date you need to let us know by
  • When your mortgage payments will restart. For example, if you took a three month payment break over April, May and June, then your next payment will be start in July
  • Once you’ve chosen an option we’ll write to let you know we’ve updated your account and re-confirm your new monthly payments.

How to contact us

The best way to contact us at this time is by email or request a call back. Please check out our frequently asked questions above before contacting us, we’re updating these regularly with the questions our customers are asking us.

If you're a commercial mortgage customer you can find out more information here. 

Subject to status. Your mortgage will be secured on your property. Your property may be repossessed if you do not keep up repayments.