Last updated: 04 June 2020

Apply for a payment holiday

On 22 May 2020 the Financial Conduct Authority (FCA) announced its intention for lenders to extend payment holidays beyond the original 3 month period to 6 months for customers who have been affected by COVID-19 ensuring the additional payment holiday is the right option for their circumstances.

For customers who are wanting to extend their payment holidays we are currently working on a solution that we will have live shortly.

If you need to take a short break from paying your mortgage because you feel you have been affected by the Coronavirus in any way, you can complete the form linked below and we’ll do the rest.

Please note

  • You will need to complete one application for EVERY mortgage account you have with us.
  • Your mortgage payments must be fully up to date. If you are not up to date with your payments, we may still be able offer you a payment holiday but we will need to discuss this with you first. Please contact us using the details below:

Buy-to-Let, Short Term Lending, Commercial Investment
T: 0345 848 0223
cm.customer@shawbrook.co.uk

Second Charge Mortgages
T: 0345 650 6287
sl.customer@cs.shawbrook.co.uk

 

How it works

  1. Fill in the details below - it only takes 2 minutes.
  2. If you take a mortgage payment holiday, this means that you wouldn’t make mortgage payments for up to the time period you selected (maximum three months). However, it’s important to remember that you will still owe that money.
  3. As a result, your mortgage balance will increase as interest is still applied during the period of the payment holiday, this means that you could end up paying more over the term of your mortgage. But don’t worry, there will not be any impact on your credit file.
  4. At the end of the payment holiday period your monthly payment will be recalculated over your remaining mortgage term. Your monthly payment will increase for the remaining term of your mortgage. We will write to you to let you know your new monthly amount before the end of your payment holiday. If you are unable to afford your new monthly payment, please let us know as we have a range of options available to help you.

Before you get started

  • You’ll need your mortgage account number. If your account is a joint account, then this form only needs to be completed once.

Complete Form

FAQs

If you’re going to struggle to make your monthly mortgage payments a mortgage payment holiday may be the right option for you. The mortgage payment holiday will not impact your credit file and can last between one and three months.

Mortgage payment holidays are available to mortgage customers who may be impacted by coronavirus and are also available to buy-to-let landlords whose tenants are affected.

You can apply for a mortgage payment holiday if:

  • Your finances have been affected by coronavirus
  • You have consent from everyone named on the mortgage

Where possible we will start your mortgage payment holiday from your next monthly payment. However, if your next payment is due in the next few days, your payment holiday may start the following month. Please do not cancel your direct debit but if the payment is likely to fail please call us to discuss.

We’ve received a large number of requests for mortgage payment holidays and as a result applications are taking longer to process than expected. Some confirmation letters have been delayed as result but please bear with us.

Yes, if you take a mortgage payment holiday, we’ll add your monthly payments to your mortgage balance. 

This means that your mortgage balance will increase and the amount of interest you pay will increase for the remaining term of your mortgage. Your monthly payment then increases to reflect this after the payment holiday has ended. 

Following the mortgage payment holiday we will add these payments onto your remaining mortgage. As a result, your mortgage balance will increase and your monthly payment will be recalculated over your remaining mortgage term.

Your monthly payment and the amount of interest you pay will increase for the remaining term of your mortgage. However, there are options available to minimise this. We’ll send you more information about these in your reminder letter at the end of the payment holiday.

To make things a little easier, we've waived any arrears fees during this period.

For extra peace of mind, we won't seek possession of any properties during this period.

Some valuations are proceeding electronically but others may need to be delayed. If you have any questions about your valuation, please speak to your mortgage broker or contact us.

We’d like to reassure you that all our product transfer requests are being reviewed and processed as normal. If you have any questions about your transfer request, please speak to your mortgage broker or contact us.

Yes, you can apply for a new product if your existing deal ends within the next three months.

We will not be able to offer further lending if a payment holiday has been utilised until we have received three monthly payments following the end of the payment holiday period.

Close

Apply for a payment holiday

If you need to take a short break from paying your mortgage because you feel you have been affected by the Coronavirus in any way, you can complete the form below and we’ll do the rest.

For your safety, please do not send security details such as passwords by email.

Fields marked with an asterisk are mandatory.