Credit Score Basics > How to apply for a Barclays mortgage payment break

How to apply for a Barclays mortgage payment break

Wollit Team2 minute read · Updated 1st July 2024

A mortgage payment break, also known as a payment holiday, is an agreement between you and your mortgage lender that allows you to temporarily stop or reduce your monthly mortgage payments.

This can be a helpful solution if you are facing financial difficulties or unexpected expenses. The break can be for a set period, usually from one to twelve months, depending on your lender and the terms of your mortgage contract.

If you have a mortgage with Barclays, the good news is that Barclays offers payment breaks for certain types of mortgages, such as Barclays Direct mortgages.

Here is how you can apply for a Barclays mortgage payment break, and how it may affect your credit score.

How can I get a mortgage payment break from Barclays?

If you want to request a payment break, you need to contact Barclays directly and talk to them about your financial situation.

To be eligible for a payment break, you must explain very clearly the reason for the break and provide details about your current income and spending.

Barclays will continue charging interest at the rate specified in the mortgage letter, and the repayment amount will increase to ensure the balance is paid by the end of the agreed term.

However, Barclays will not approve a break if any repayments have been missed in the previous 12 months or if the mortgage is less than 6 months old or within the final 6 months of its term.

Also, if they approve your request for a break, you may be limited to 6 payment holidays during the mortgage term, with no more than 3 allowed in a 12-month period.

Once a payment holiday ends, you will resume paying the original amount stated in the loan agreement. Barclays automatically restarts Direct Debits at the end of the payment holiday. If you need to set up a new Direct Debit, you should contact your bank first and then Barclays. It's crucial you do this so you can avoid accidentally having a missed payment, which can hurt your credit score and lead to further issues with Barclays.

Does taking a mortgage payment break with Barclays hurt my credit score?

No, mortgage payment breaks on Barclays Direct mortgages will not affect your credit score. The breaks are designed to help you manage your financial situation without hurting your credit history.

In fact, you should continue working on improving your credit score even while you’re on a mortgage payment break.

This is because, if you find mortgage payments unaffordable, you might want to refinance later if the interest rates go down. To get a better deal then, you'll definitely need a good credit score.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies. This helps you build your credit history and gives you a chance to improve your credit score, preparing you for potentially refinancing later on and getting a deal which can make your mortgage payments more affordable without taking a payment holiday.