Mortgage payment holidays have been extended

Updated: Jan 20

Mortgage payment holidays are being extended for homeowners financially affected by the pandemic.

In March 2020, the government announced a three-month payment holiday on mortgages. This aimed to provide UK homeowners who were suffering financial loss due to COVID19 with some relief.

Banks have agreed to offer tailored support to borrowers who needed it thereafter. But unlike initial payment holidays, this support would be reflected on the borrower’s credit report. The government has since stated that it is extending the mortgage payment holiday.


The deadline to apply for a mortgage payment holiday has been extended to 31 March 2021.

Your payment holiday can be up to a maximum of six months. So, if you have already taken the full six-month payment holiday, you cannot apply for another one. However, your lender might be able to help you in other ways. If you’ve already taken your full payment holiday, it’s important you understand what happens when it comes to an end.

Borrowers who have not yet had a mortgage holiday can request a pause in repayments from their lender. This can last up to six months.


Those who have already had payments deferred can extend their mortgage holiday until they reach the six-month limit.

During this period, interest will still accrue on what borrowers owe.

Borrowers who have already reached the maximum six-month mortgage holiday and are still facing difficulty making repayments are being advised by the FCA to speak to their lender about a tailored support plan.