UK Mortgage Payment Holiday Calculator
See exactly how much a payment holiday costs, how your balance grows, and what your new monthly payment will be when you resume. All figures in GBP.
Month-by-month breakdown of how your balance grows during the payment holiday. Interest compounds each month on the unpaid balance.
| Month | Opening Balance | Interest Added | Closing Balance |
|---|---|---|---|
| Month 1 | £200,000 | £750 | £200,750 |
| Month 2 | £200,750 | £753 | £201,503 |
| Month 3 | £201,503 | £756 | £202,258 |
| Total | £200,000 | £2,258 | £202,258 |
A payment holiday is a contractual right built into many UK mortgage deals. Forbearance is a lender granting hardship-based relief — a key legal distinction.
- No credit file impact if agreed
- Built into FCA rules (MCOB 13)
- No need to prove hardship
- Up to 6 months typically
- Interest accrues but no arrears
- Interest still accrues
- Higher payments afterwards
- Must be agreed formally
- Severe financial hardship
- Risk of repossession
- FCA MCOB 13 obligations apply
- Lender must consider options
- May require proof of hardship
- More lender discretion
- May still impact credit file
- Could lead to term restructuring
How to Use This UK Payment Holiday Calculator
Enter your mortgage balance, interest rate, current monthly payment, remaining term, and the number of months you want to pause payments. The calculator instantly shows the interest that will accrue, your new balance at the end of the holiday, and your revised monthly payment when you resume.
What a Payment Holiday Actually Means
A payment holiday does not mean interest stops. Your lender permits you to skip monthly payments, but interest continues to accrue on your outstanding balance every day. After the holiday, this accrued interest is added to your mortgage balance — increasing both what you owe and your future monthly payments.
The Advanced and Pro Tiers
The Advanced tier shows a month-by-month cost breakdown of your holiday, compares the recapitalize vs extend-term options for resumption, and provides an FCA eligibility checklist. The Pro tier compares payment holidays against mortgage forbearance, explains the credit impact in detail, and models the full long-term cost of a 6-month holiday on a £200,000 mortgage.
The Payment Holiday Formula
Balance After N Months = Balance × (1 + Monthly Rate)^N
Total Accrued Interest = Balance After Holiday − Original Balance
New Monthly Payment = New Balance × [r(1+r)^n] / [(1+r)^n − 1]
Where r = monthly rate, n = remaining months after holiday
For a £200,000 mortgage at 4.5%: monthly interest accruing is £750. Over 3 months the balance grows by approximately £2,259 (compounding). New monthly payment rises from roughly £1,111 to £1,133 — not huge for 3 months, but a 6-month holiday accrues over £4,500.
Example: Emma's 3-Month Payment Holiday
Scenario: Emma Takes a Career Break
Emma has a £185,000 repayment mortgage at 4.75% with 18 years remaining. She takes a 3-month payment holiday to cover a period of reduced income.
| Mortgage Balance | £185,000 |
| Interest Rate | 4.75% |
| Current Monthly Payment | £1,164 |
| Holiday Duration | 3 months |
| Monthly Interest Accruing | £732 |
| Total Interest Accrued | £2,203 |
| New Balance After Holiday | £187,203 |
| New Monthly Payment | £1,178 |
| Payment Increase | +£14/mo |
Emma saves £3,492 in payments during the holiday but owes £2,203 more — and will pay slightly more interest on the higher balance for the remaining 18 years. The true net cost of the holiday is higher than £2,203 once future interest on the accrued amount is factored in.