Mortgage payment holidays

A payment holiday could give you a break from paying all or part of your mortgage repayments.

 

How payment holidays work

  • Pause your mortgage payment for up to 6 months with Lloyds.
  • We’ll continue to add interest to your mortgage, so the amount you owe will increase.
  • If you’ve made overpayments in the last 12 months, you could make underpayments instead.

What is a mortgage payment holiday?

A mortgage payment holiday lets you pause your repayments for an agreed period. You might choose to pause the full payment or part of your monthly payment based on what you can afford to pay.

This could give you flexibility if your circumstances unexpectedly change and you need to take a break. For example, it might help if you have:

  • sudden employment changes
  • emergency household costs
  • emergency medical costs
  • emergency car costs
  • maternity or paternity leave.

Most lenders offer mortgage payment holidays for a few months. If you have a mortgage with Lloyds, you could pause your mortgage payment for up to 6 months. But keep in mind, we’ll still add interest to your mortgage during the break. This means the amount you owe will increase.

Can I take a mortgage holiday with Lloyds?

When you can take a mortgage holiday

  • You’ve had a mortgage with us for over 12 months.
  • You haven’t taken out any more borrowing in the last 6 months.
  • The property is your primary residence.
  • You owe less than 90% of the value of your property.
  • You’ve kept up with your mortgage payments in the last 12 months.

When you can't take a break

  • You’ve already taken a payment holiday that lasted more than 6 months.
  • You’ve already taken a repayment holiday in the past 3 years.
  • You get support from the Department of Work and Pensions to help with your mortgage payments.
  • You have a joint mortgage and not everyone agrees to a mortgage break.

Should I take a mortgage payment holiday?

Benefits of a mortgage holiday

  • Gives you short-term relief from your mortgage payments.
  • You can focus on unexpected or emergency costs, rather than borrowing more to cover these payments.
  • Could help with temporary financial difficulty from redundancy or illness.
  • Keeps us informed about your current situation and helps reduce the risk of missed mortgage payments.

Things to consider

  • Your monthly payments will be recalculated at the end of the mortgage holiday.
  • Your payments are likely to be higher than before.
  • The amount you owe will increase, as you’ll still build up interest on your remaining balance during the break.
  • Mortgage holidays are a short-term solution, so they may not be suitable if your circumstances permanently change.

How to apply for a mortgage holiday

If you’re an existing Lloyds mortgage customer, you can call us to apply for a payment holiday.

You could lose your home if you don’t keep up your mortgage repayments

Let’s look at the details

You may also like

Mortgage help and guidance

Use our help hub to discover everything you need to know about mortgages.

Find help and guidance

Meet our app spaces

From everyday banking to long term goals, get an at-a-glance overview of what's important to you.

Explore spaces

Existing customers

Get answers to your everyday questions. We have a wide range of topics to support you and your mortgage.

Existing customers

Managing your mortgage

Learn how to make the best of your mortgage with us.

Manage your mortgage

Managing your mortgage

Learn how to make the best of your mortgage with us.

Manage your mortgage