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Buy-to-let mortgage payment holiday

What is a mortgage payment holiday?

A mortgage payment holiday entitles you to not make any repayment on your Paragon mortgage for a period of three months. The amount deferred under a mortgage payment holiday remains repayable and will continue to accrue interest, which will lead to increased payments over the term of the mortgage.

Does this impact my credit rating?

We do not report your mortgage payment holiday to the Credit Reference Agencies. However, a mortgage payment holiday may be considered during applications for further lending with Paragon and other lenders.

Can I take out a mortgage payment holidays even if my tenant is not experiencing a loss of income?

The Government guidance is that mortgage payment holidays should be taken to support tenants experiencing financial difficulties as a result of coronavirus. Paragon has a range of options available for customers experiencing financial stress and we would urge customers to contact us to discuss their individual circumstances.

What will happen to the payments I don’t make during the course of the mortgage payment holiday?

Deferring your mortgage payment will increase the total balance due. As this balance attracts interest, it will therefore increase the total amount payable over the life of the loan and lead to increased payments over the term of the mortgage.

What if I want to take out additional borrowing?

Taking a mortgage payment holiday may be considered during applications for further lending with Paragon and other lenders.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551