Last updated: 18 November 2020

Apply for a payment holiday

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).

Keep in mind

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 able to return to full or part repayments it is in your best interest to do so rather than request a payment holiday which will cost you more in the long term
  • Interest will be charged if you take a repayment holiday, so you'll pay more interest overall meaning that the total amount your total amount payable will increase.


Alternative options

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


Impact of payment holiday

  1. If you take a mortgage payment holiday, this means that you wouldn’t make mortgage payments for up to the time period you selected. However, it’s important to remember that you will still owe that money.
  2. 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.
  3. For repayment mortgages, 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. Although you can choose, subject to circumstances, to extend your term or pay off the amount owed over a shorter period of time.
  4. For interest only mortgages, the interest you defer during the payment holiday will be added onto your mortgage balance. This means you’ll be charged interest on a higher balance for the rest of your mortgage term. You’ll also need to make sure the repayment strategy you have in place is enough to repay the higher balance when your mortgage ends.
  5. A further payment holiday won’t be recorded on your credit file, so it won’t affect your credit score, but lenders might take it into account when making future lending decisions.
  6. In addition to any previous payment holidays you’ve taken, during a further payment holiday or period of reduced payments, we’ll again charge interest on the full amount you owe, and add this interest to the balance each month. If the payment you’re making doesn’t fully cover the interest due each month, we’ll add the difference between the interest due and the amount you’re paying to your mortgage, which will increase the amount you owe.
  7. We'll periodically send you an SMS with a link to make a payment, of any amount, if you feel able to do so.


Please note

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


How it works

  1. It is important that you see how taking a mortgage holiday can affect your future payments. Step 1 requires you to complete our Mortgage Payment Calculator to find out how it affects your balance and future payments. Please note you will need your mortgage balance, rate and existing term – These details can be found on your annual statement or have been recently sent to you via SMS. If you are unable to locate this information and require us to send this to you please click here.
  2. If you are happy with the personalised information provided by the calculator you can proceed to the Mortgage Payment Holiday application form (if you don’t want to proceed you can stop the process).
  3. When completing the application form you will need your mortgage account number. If your account is a joint account, then this form only needs to be completed once.
  4. Following completion of the Mortgage Payment Holiday form we will process the application and communicate to you your new payment details.

Start Mortgage Payment Holiday Process


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:

  • 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.


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.

Please Note, the term 'Payment Holiday' is now referred to as a 'Payment Deferral' in the latest guidance issued by the Financial Conduct Authority