Coronavirus Payment Holidays Come to an End

April 2021 has seen lockdown across the UK begin to lift, but with many still furloughed or without employment, what can you do now that payment holidays, or payment freezes have ended?

When you asked for the payment holiday, you’ll probably have discussed the options for once it comes to an end. There are usually two options, increase the duration of borrowing, or increase monthly repayments.

Mortgage payment holidays

Speak to your lender – the chances are, they’re going to ask you to increase your monthly payment, the amount it will increase by will depend on the time remaining on your mortgage term. Generally, the less time left on your mortgage, the more your payment will increase.

If you’re worried about having to increase your monthly payment and feel it will have a knock-on effect to your financial situation, let your lender know. There may be options such as increasing your mortgage term or paying interest only for a while.

Loan payment holidays

Your lender will want to speak with you to check the new payment amount will be affordable. If you don’t think you’ll be able to afford the increase, it’s really important you discuss this with them as if you don’t tell them any different, they will automatically increase your payment.

If you let them know, you may have a few options to help. The lender may consider increasing the duration of your loan, complete an assessment to put together a more affordable payment plan or waive any fees they’d normally charge for missed payments.

Credit card and store card payment holidays

If you feel your payment may not be affordable when it’s due to restart, you’ll need to speak to your credit card provider. They’ll usually resume payments automatically, so keep an eye on your statements to check the due dates and amounts.

Your credit card provider may offer you some options to make things easier. This could be reducing or stopping interest on your credit card, agreeing a more affordable monthly payment, or changing your payment due date.

Maximising your income

Using a benefit checker such as entitledto or Turn2Us will help with understanding any additional income you can claim. Once you know what you’re entitled to, you can then apply, which will make covering your bills and general expenses easier.

Getting debt advice

If you have multiple debts or would prefer to speak to an experienced debt advisor about your options, we’re able to help.

We understand that making payments to the debts might not be possible at all and will guide you through your debt solution options.

You can speak to an experienced debt adviser on 01925 599400, via email at or if you’d prefer advice without speaking to anyone, you can use our Online Debt Advice Tool.

Don’t have an account with us and are looking for debt advice?

Angel Advance provides online debt advice to get you back on track and make your finances more manageable.

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