Last updated: 18 November 2020
On 31st October 2020 the government announced the extension of further economic support to help people through the effects of coronavirus, including the extension of payment holiday arrangements. We are currently working with the regulator to understand the revised guidance and how our customers can apply for a new or an extension to their payment holiday arrangements.
Please Note: If you have already had six months’ worth of payment holidays to support you with the financial impacts of coronavirus you are not eligible to request any further extensions. If, however you feel you still need help you can contact us directly to discuss alternative support.
Repayment holidays are available for customers whose circumstances have been affected by coronavirus and are unable to keep up full contractual payments. If you are already in a payment holiday or your payment holiday has recently ended you may request a further payment holiday (for a maximum of six months payment holiday in total).
Before requesting a payment holiday, it is important that you read and understand the below information as a payment holiday may not be the most suitable option for your circumstances.
If you are unsure about any of the information provided or whether a payment holiday is the most suitable option for you please contact us before proceeding on:
Buy-to-Let, Short Term Lending, Commercial Investment
T: 0345 848 0223
Second Charge Mortgages
T: 0345 650 6287
Please Note: If your mortgage was originally taken out with another lender and subsequently transferred to Shawbrook then our Mortgage Payment Calculator may not provide you with accurate personalised information. This is also the case if your account is in arrears, your mortgage is part repayment and part interest only or if you do not make your payments on a monthly basis. If you continue to complete the payment holiday request form, we will issue you with personalised information of the impact of this deferral on your repayments at which point you can decide whether this is the most suitable option for you.
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:
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.
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.
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.
Please Note, the term 'Payment Holiday' is now referred to as a 'Payment Deferral' in the latest guidance issued by the Financial Conduct Authority