Payment Holiday Information

How to apply for a payment holiday on your Swansea Building Society mortgage
Please click on the following link for more information: Mortgage Payment Holiday Notice

Customer Update 16/09/2020 - Coronavirus (COVID-19) 3 Month Mortgage Payment Holiday

Following the recent announcement from the FCA we are continuing to support our customers affected by Coronavirus. The Society has helped many of our mortgage customers during these unprecedented times by offering a 3-month mortgage payment holiday. As this payment holiday period will be coming to an end shortly, we are committed to keeping our customers informed about what happens next to get their mortgage payments back on track. Please note that the deadline for applying for a NEW mortgage holiday ends on 31st October 2020.

The FCA guidance recommends that if you are able to maintain your mortgage payments, you should do so. 

We will be writing to all customers approximately one month prior to their mortgage payment holiday ending, to let them know what their new monthly mortgage payment will be, and when the new mortgage payments will begin, and offering the following options:

Option 1 
The monthly interest charged to the mortgage during the 3-month payment holiday period will be added to the mortgage balance and repaid over the remaining term of the mortgage.

This means that you will see an increase in your monthly mortgage payments once your mortgage payment period is over and the amount of interest payable under your mortgage contract will have increased.

Option 2a
You may opt out of capitalising the interest and discuss an alternative arrangement directly with a member of our staff, which will suit your individual circumstances. Options available to you are:

1.  Repay all or part of the accrued interest via a lump sum payment.
2.  Repay the accrued interest over a shorter period of time, e.g. 12 months.

Option 2b
If you are worried about paying the new mortgage payment our mortgage administration team will be able to discuss your options further, based on your individual circumstances, as you may be able to apply for a mortgage payment holiday extension. These options include:

1. Switch to paying interest only for a further period, where you are able to afford the interest cost.
2. A payment deferral for a further period.
3. A partial payment, based on what you can afford to pay during this period.
4. Extend the term, this is a longer term solution and may not be an appropriate option at the present time.

Here is a flow chart to help you decide the best option for you. (Click here for a larger version).

When will I be written to regarding the options?

We will will write to you approximately one month prior to your mortgage payment holiday period ending, giving you time to assess your current financial circumstances and make the appropriate arrangements to bring your account back on track.

Please can we ask you to not contact us before receipt of the letter you will shortly receive from us as detailed above unless you cannot afford to re-start your mortgage payments on the due date.

If you normally pay by direct debit, we will automatically collect your payment from your bank account. If you don’t pay by direct debit or have cancelled your direct debit, you will need to make other arrangements to make the payment.

What happens if I need a mortgage payment holiday extension?

If you are unable to maintain your mortgage payments at the end of your payment holiday, then we may consider a payment holiday extension of up to 3 months, providing the payment holiday ends by 31st January 2021.

If you require further support, we will need you to supply us with the following information to help us guide you to the best possible solution  to suit your individual circumstances. We will need;

1. A fully completed statement of personal details (click here)
2. 3 months bank statements for ALL bank accounts held
3. A letter explaining your circumstances for requiring the payment holiday extension.

We appreciate you might be concerned about the impact of coronavirus and want to reassure you that we are here to help you with any concerns you have about your mortgage.

Further advice and support can be found at the following websites


Remember, during April we wrote to you to confirm we have reduced all of our existing customer mortgage interest rates with effect from 1st May 2020 to further help our customers with their future monthly mortgage commitments.