Mortgage payment deferment FAQs Frequently asked questions

Mortgage payment deferment FAQs

Frequently asked questions

Your mortgage payment deferment relating to COVID-19

Below are frequently asked questions to provide useful information if you already have a mortgage payment deferment in place due to the effects of COVID-19, or are coming to the end of your mortgage payment deferment period:

We will contact you at least two weeks before the end of your mortgage payment deferment period in writing or by email. No action is required until you hear from us, unless you wish to change your current arrangement.

We will contact you at least two weeks before your mortgage payment deferment ends and confirm how much interest you have accrued during the mortgage payment deferment period and what your new balance is.

We will recalculate your monthly payment taking in to account the interest accrued and the payments you did not make during your payment holiday, so that your mortgage is fully repaid by the end of your term. In most cases your payment will increase. This step will happen automatically if you do not confirm your preferred option.

You have the following other options:

  • You could pay the missed payments and additional interest accrued in one lump sum. Please contact us via paymentholiday@mhbs.co.uk to arrange this.  You can pay either via a bank transfer or a debit card payment over the phone. Please note that you pay interest on the outstanding amount, therefore the quicker you repay the missed payments the less interest you will pay.
  • You could arrange to make up the missed payments and additional interest accrued over a number of months, to suit your circumstances. For example if the total of your missed payments is £600, you could pay an extra £100 a month for six months plus an additional amount to repay interest accrued. Contact us via paymentholiday@mhbs.co.uk to arrange this. Please note that you pay interest on the outstanding amount, therefore the quicker you repay the missed payments the less interest you will pay.
  • If you have a repayment mortgage we could consider extending the term of your mortgage to keep your payments the same as they were before your deferred mortgage repayment period.  This will mean that you take longer to pay off your mortgage than you had planned and the amount of interest you pay will increase. Please note that if a term extension is requested a full assessment of income and expenditure may be required. Email paymentholiday@mhbs.co.uk so that we can get in touch to discuss this option.

Alternatively if you feel you need further support please email paymentholiday@mhbs.co.uk to arrange an appointment to discuss extending your mortgage payment deferment period. We’ll assess your individual circumstances.

When we contact you before your mortgage payment deferment ends we will confirm the amount due. You can pay this by debit card or faster payment. In order for us to adjust your account in time, you must make this payment before the date we give you when we contact you. When this is done, we will re-confirm your regular monthly payment.

When we write to you before your mortgage payment deferment ends we will confirm the amount due following the missed payments. If you feel you can increase your monthly payments to cover this amount please contact us via paymentholiday@mhbs.co.uk and we can arrange this for you.  This will reduce the extra interest due over the lifetime of your mortgage as a result of your deferred mortgage payment period. For example if your usual mortgage payment is £200 per month and you had a three month deferred mortgage payment period, you could pay the £600 back over a six month period. This means you would need to pay an extra £100 per month for six months in addition to your usual monthly payment. Please note that you pay interest on the outstanding amount, therefore the quicker you repay the missed payments the less interest you will pay.

 

When we contact you ahead of the end of your agreement, we will confirm your updated mortgage payment amount. We will tell you how much interest you have accrued during your mortgage payment deferment and what your new balance is.

Ahead of the end of your deferment period we will tell you how much interest you have accrued during your mortgage payment deferment and what your new balance is. We will also outline your new monthly payments. Please talk to us about your options. If you have a repayment type mortgage you can ask us to extend the term.

It’s really important that you talk to us so we can understand your latest situation. We do encourage those who are able to repay all or partial amounts of their missed payments to do so – it is often in your best interests. If you are unable to do this, we will discuss your options with you. Please get in touch as soon as you can, in the first instance via email at paymentholiday@mhbs.co.uk or by calling the team.

If we don’t receive a response before the date we give in our communication, after your mortgage payment deferment period we will add the accrued interest to the balance of your mortgage and your new payments will begin as outlined.

When we contact you as you approach the end of your mortgage payment deferment period we will address your options relating to the payment deferment specifically. You should choose whichever option is best suited to your circumstances. We will also be in contact to talk about your existing arrears arrangement.

If you’re anticipating facing further difficulties meeting your mortgage payments please get in touch as soon as you can. The best way is to email paymentholiday@mhbs.co.uk with your name and contact telephone number. Please don’t send sensitive information such as your account number by email. We will arrange a telephone appointment for you with one of our Mortgage Specialists, you should allow up to 48 hours for a response.

Alternatively, you can call directly on:

01858 412514 Mon – Fri 9.00am – 5.00pm

01858 412363  Mon – Fri 9.00am – 5.00pm

01858 412598 Thurs – Fri 9.00am – 5.00pm

We are experiencing a high number of enquiries at the moment so please bear with us.

You may also find these other websites useful:

Money Advice Service
www.moneyadviceservice.org.uk 

Step Change
www.stepchange.org

National Debtline
www.nationaldebtline.org

Citizens Advice
 www.citizensadvice.org.uk  

FCA
www.fca.org.uk/coronavirus-support