If you haven’t yet taken a mortgage payment holiday, you will be able to apply for a three month break (a deferral of your mortgage payments) until the end of October 2020 if you’ve been financially impacted by coronavirus. You can do this via our online form here.
If you are coming to the end of your existing mortgage payment holiday we will write to you to let know your recalculated monthly payment and your revised mortgage balance and outline the next steps to support you during these difficult times. If you can afford to re-start your mortgage payments it’s in your best interests to do so.
These letters are being issued a month before your revised monthly payment will be taken but allowing for any postal delays, we would expect that the letter will arrive no later than 15 days before your next payment is due
If you’re applying for a further payment holiday or you’re applying for the first time, it’s really important you understand the impact of this deferral (payment holiday you’ve already taken) on your future payments and what a further payment break will mean for your mortgage. You can either e-mail us at CommercialLendingRelationshipTeam@ybs.co.uk, and we can provide you with a estimated illustration or you can use the following online calculator from Money Advice Service to help you understand the impact on you and your options.Please note that when using the online calculator it is assuming that the interest rate repayment type (interest only or repayment) and term are the same across the whole mortgage. This may not be the case for example if you have taken a further advance/additional loan or have an element on Interest only. If these details are different on each part you may want to calculate each part separately for the most accurate calculation. These details will be available on your most recent mortgage statement.
If your current mortgage holiday has ended, you can apply for a further mortgage payment holiday here:
Mortgage payment holiday request form
If you’re worried about meeting your long term financial needs then a payment holiday may not be the best option for you. This is because during the payment holiday period interest will continue to be charged and your mortgage balance will increase. Therefore, if you’re already in arrears or facing long term difficulty it’s really important you talk to us before applying for a payment holiday.
If you are considering whether a mortgage payment deferral is right for you, see the Money Advice Service’s A guide to coronavirus mortgage payment holidays for useful information.
If you are able to maintain your mortgage payments, you should continue to do so.
However, if you have been financially impacted by COVID19 and this is impacting your ability to meet your monthly mortgage payment, then you are able to request a payment holiday up to a maximum of 3 months as long as you are currently up to date with your mortgage repayments without any impact on your credit file. If you are currently in arrears, please e-mail us at CommercialLendingRelationshipTeam@ybs.co.uk, and we will call you back to discuss alternative solutions.
If you choose to take a payment holiday you of the instalment break and written confirmation will be provided. The payment will be calculated at that time using your higher balance and spread throughout the remaining term. It is very likely your monthly payments will increase.
If you have elements of your mortgage account on interest only you need to be aware that these balances will increase to cover the amount of accrued interest that has been added due to the missed payments.
For the interest only elements of your mortgage the recalculated monthly payments will continue to only pay off the interest and will not reduce your increased outstanding balance. It is important, therefore, to check regularly that your savings plan and other investment plan that you may have in place is on track to repay this mortgage at the end of its term.
If your mortgage is a buy to let and we agree a payment holiday with you because your tenant is unable to pay the rent then the benefit of the payment holiday should be passed onto the tenant.
If you hold more than one account with us, please contact us.
Your initial payment holiday will be agreed in writing subject to approval.
Although Payment Holidays can help in the short term, if you have a repayment mortgage at the time of the payment holiday the interest will continue to be added to your mortgage and the missed payments will need to be made up over the remainder of the mortgage term, meaning that your contractual monthly payment will increase.
By requesting a payment holiday, you are confirming:
You may be eligible to apply for a Payment Holiday if:
If your account is in arrears, you may be eligible but we would need to talk to you to assess this.
Although we try to help as many customers as possible, there will be some cases where a payment holiday may not be available to you.
If you haven’t already taken a mortgage payment holiday, think you would be eligible and would like to apply for a payment holiday, complete the form below.
If you have already had a mortgage payment holiday and want to apply for a further payment holiday you will have to wait until you have come to the end of your existing payment holiday and have received a letter from us outlining the impact of your previous holiday.
Before you do this, it’s really important you understand the impact of this deferral (payment holiday you’ve already taken) on your future payments and what a further payment break will mean for your mortgage. You can either e-mail us, and we can provide you with a estimated illustration or you can use the following online calculator from Money Advice Service to help you understand the impact on you and your options. Please note that when using the online calculator it is assuming that the interest rate repayment type (interest only or repayment) and term are the same across the whole mortgage. This may not be the case for example if you have taken a further advance/additional loan or have an element on Interest only. If these details are different on each part you will need to calculate each part separately for the most accurate calculation.
To apply for a Payment Holiday, complete the:
We will aim to respond to your request within 7 working days but please bear with us as we are experiencing high volumes.