Payment holidays

A payment holiday is an agreement to reduce or pause your mortgage payments for a set period of time.

Payment holidays are only available on certain mortgage products, so you should check the conditions of your latest mortgage offer to see if your mortgage product allows payment holidays.

Before we can approve a payment holiday, we will need to consider your circumstances and the reason for the request. The Society will not allow any payment holiday periods that would result in the mortgage balance rising above the amount that was originally borrowed.

If your payment holiday is approved, interest will continue to be charged to the account during the payment holiday period. This means your mortgage balance will increase, and the overall amount of interest payable will be higher.

After a payment holiday, your monthly payments will increase for the remaining term of the mortgage. This is to ‘catch up’ so that the mortgage is still paid off over the original term.

To discuss payment holidays with a member of our team, please contact us.