Mortgage payment holiday examples | Ulster Bank

Overlay
Woman on chair browsing on laptop

Payment holiday examples

Coronavirus mortgage payment holiday

When requesting a payment holiday for you mortgage, it's impotant that you understand the impact on your overall balance and your monthly payments. 

We've provided below illustrative examples of a 3-month mortgage payment holiday, demonstrating the impact on monthly payments when paying 50% or 0% of your monthly payment amount for 3 months.

These examples are based on the assumption that your interest rate and mortgage term will remain the same after the payment holiday and are not due to change under your existing terms and conditions.

Example 1

Remaining mortgage term: 5 years. Fixed interest rate: 2%.

 

Mortgage balance Regular monthly payment New monthly payment when paying 50% for each month of the payment holiday New monthly payment when paying nothing for each month of the payment holiday
£50,000 £876.39 £900.66 £924.90
£100,000 £1,752.78 £1,801.32 £1,849.79
£150,000 £2,629.16 £2,701.98 £2,774.69

 

Example 2

Remaining mortgage term: 10 years. Fixed interest rate: 2%.

 

Mortgage balance Regular monthly payment New monthly payment when paying 50% for each month of the payment holiday New monthly payment when paying nothing for each month of the payment holiday
£50,000 £460.07 £466.59 £473.10
£100,000 £920.13 £933.19 £946.20
£150,000 £1,380.20 £1,399.78 £1,419.31

 


During your payment holiday, interest will continue to accrue which means you’ll pay back more over the full term of the mortgage. We will provide you with an estimate of your new monthly mortgage payment prior to commencing a payment holiday.

We will confirm your new mortgage payment at the end of your payment holiday, based on any reduced payments you’ve made during the holiday period.

Set Tab for lightbox