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What is a payment holiday?

With a payment holiday you will not have to make any monthly mortgage payments for a set amount of time, in this case up to three months.

However, it’s important to remember that your mortgage balance will increase, you will still owe that money and the associated interest which accrues during your payment holiday period.

Am I eligible for a payment holiday?  

Yes, all of our customers are eligible for a payment holiday, regardless of whether your account is up to date or in arrears.

However, if you are currently in arrears, we encourage you to get in touch with us on 0345 149 7751 to discuss all the options available and agree the best solution for you. 

Is a payment holiday the best solution for you? 

We are committed to helping customers find the best option to suit their needs, so although all customers may be eligible for a payment holiday, this may not always be the most suitable approach and may not be required by all customers. Therefore, we will speak with you to find out how we can best support you.

How can I apply for a payment holiday with you?

If coronavirus has impacted you, please email us at scservicing@paragonbank.co.uk, quoting your account number and contact details, and a member of the team will be in touch with you.

If I take a payment holiday what will happen to my credit file?

Your credit file will not be impacted by your payment holiday as we will not report your deferred payments to credit reference agencies during this time. This means there will be no adverse effect to your credit report.

What impact will a payment holiday have on my future monthly payments?  

Your mortgage balance will increase during the payment holiday period and you will still owe that money and the associated interest which accrues during that time.

When it’s time for your usual monthly payments to start again, we will contact you to understand your circumstances and agree a manageable way for you to repay the deferred payment(s) and associated interest charges.

What if my circumstances have not changed at the end of the payment holiday?   

Please contact us as soon as possible. We are here to help you throughout this difficult time and have a full range of tools available to support those experiencing financial difficulty.

If I request a payment holiday but no longer need it, what should I do?

That’s no problem, we appreciate that during this time things can change quickly.

Please call us on 0345 149 7751 or email scservicing@paragonbank.co.uk if you’d like to cancel your payment holiday. 

Will you extend my payment holiday?

Yes. We are happy to consider an extension to your payment holiday if you are still experiencing financial difficulties as a result of the coronavirus pandemic.

Please call us on 0345 149 7751 or email scservicing@paragonbank.co.uk to discuss this so we can make sure this is the right solution for you.

What further help and advice is available?

For further guidance on the support available during the coronavirus pandemic, you can contact one of the following organisations.

Money Advice Service

Coronavirus Support Page visit www.moneyadviceservice.org.uk


Information page on Dealing with financial difficulties during the coronavirus pandemic www.fca.org.uk

Here are also the details of some of the organisations which offer free, confidential and impartial debt advice.

Money Advice Service

For free, easy-to-use money tools, information and advice, visit www.moneyadviceservice.org.uk.

You can also phone 0800 138 7777 to speak to a money expert, use typetalk at 18001 0800 915 4622, or add +44 7701 342744 to your WhatsApp to send a message.

Citizens Advice

For advice and information on debt and other topics, contact your local Citizens Advice or go to www.citizensadvice.org.uk


Member centres offer debt advice including specialist advice for minority communities and people with disabilities. Visit www.adviceuk.org.uk

Christians Against Poverty (CAP)

For free debt advice. Check postcode coverage at www.capuk.org then call 0800 328 0006.

National Debtline

If you live in England, Wales or Scotland phone 0808 808 4000 or visit www.nationaldebtline.org for debt advice and information.

StepChange Debt Charity

For free debt advice throughout the UK phone 0800 138 1111 or visit www.stepchange.org

Money Advice Scotland

If you live in Scotland, visit www.moneyadvicescotland.org.uk where you can use webchat to speak to an adviser, or email webchat@moneyadvicescotland.org.uk.

Advice NI

If you live in Northern Ireland, phone 0800 028 1881or visit www.adviceni.net

Business Debtline

If you are self-employed or a small business owner, phone 0800 197 6026 or visit www.businessdebtline.org for debt advice and information.

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