Mortgage Holiday Calculator

This simple calculator will help you understand how your payments will change if you take a mortgage holiday.

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A mortgage payment holiday is an agreement between a homeowner and their lender that means no mortgage repayments are due for a set timeframe. The interest is not suspended during this period and will be added to the outstanding balance when the holiday is over.

During the coronavirus crisis, the UK government has allowed anyone with a mortgage to apply for a three-month payment holiday, but exactly how it will work is at the lender’s digression.

Since you won’t be making interest payments for three months, the interest you owe will build up during that time and be added to the outstanding mortgage balance. This means that you will owe a larger amount than before. Mortgage terms aren’t usually extended for payment holidays, so it is likely that you will need to make higher mortgage payments each month.

The government’s guidance states that mortgage payment holidays taken during the coronavirus crisis should not impact the customer’s credit report, but be sure to speak to your mortgage lender and ask them whether they’re taking these guidelines on board.

Yes. You can still apply for a payment holiday if you are behind on your mortgage payments or have certain types of bad credit as lenders are being encouraged to be lenient during the coronavirus crisis. You should speak to your lender about whether a payment holiday is in your best interest and ask them what alternatives are available.

Yes. Mortgage payment holidays have also been made available to buy-to-let landlords whose tenants are unable to pay their rent due to the impact of the coronavirus. Expect your lender to request evidence that your rental income has been impacted by the outbreak.

Simply contact your mortgage lender and tell them you’re considering applying for a mortgage payment holiday, but be sure to discuss all of the possible alternatives with them. For independent advice about coronavirus and mortgages, speak to a mortgage broker.

Many mortgage lenders are offering alternative forms of support, such as waiving missed payment penalties and extending mortgage terms. Other alternatives include remortgaging to a more affordable deal, taking equity release or switching to an interest-only agreement.

Be sure to speak to your lender about all of the alternatives on offer or seek independent advice from a mortgage broker to discuss the best course of action.

Holiday mortgage comparison

This table shows you the monthly and total cost of using a holiday mortgage, calculating the additional interest paid over the duration of your mortgage.

Monthly Mortgage Payments Total Mortgage Repayments
Original Mortgage

Holiday Mortgage


About this Calculator:
  • This calculator is designed to provide a good representation of how your lender will calculate your three-month mortgage holiday and give a good idea of the cost to you. That said, there can be nuanced differences in the ways in which lenders make this calculation. We recommend you speak to your lender to understand the specifics behind how they calculate it or contact a broker for independent advice.
  • This calculator doesn't include any broker or lender fees that have been added to the total mortgage amount.
  • The calculations assume a fixed interest rate for the entire period of the mortgage - from the beginning of your current mortgage and into the future.
  • You will still be charged interest during the payment holiday and this will be added on to the total mortgage balance.
  • The mortgage term doesn't increase as lenders generally don’t do this for mortgage holidays. Instead, the payments increase over the slightly shorter term of the mortgage to cover the additional additional interest added to the balance as well as the payments that weren’t made.
  • COVID-19 update 1 It has been reported that UK lenders have agreed to not refer mortgage holidays to credit reference agencies, but we still advise to check with lenders first. Always discuss a payment holiday with your lender beforehand and don’t ever just stop paying your mortgage without warning assuming it can be treated as a mortgage holiday. You can read all about the coronavirus measures and how mortgage payment holidays work in our blog post.
  • COVID-19 update 2 We’re assuming, after the government announcement, that lenders will still add on the interest in the typical way and the mortgage term won’t change. Whilst unlikely, it may be that the approach is changed by some lender to further ease the burden on those who are struggling.
  • COVID-19 update 3 Mortgage payment holidays are not the only support lenders are offering to customers whose finances have been impacted by the outbreak. Other mortgage providers are waiving missed payment fees and allowing borrowers to switch rates. Make sure you discuss all of the possible alternatives before agreeing to take a payment holiday.