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Mortgage forbearance is the general term for ways a lender can help a homeowner who is struggling to keep up with mortgage payments, rather than moving straight towards repossession. It can include a temporary reduction in payments, switching to interest-only for a period, extending the mortgage term, or adding missed payments to your balance. Lenders are expected to consider forbearance and treat repossession as a genuine last resort.
There is no single forbearance package that applies to everyone. What is offered depends on your circumstances, how much you owe, your payment history, and what your lender decides is workable for your account.
Why lenders offer forbearance
Under the FCA’s mortgage conduct rules, lenders must treat customers in payment difficulty fairly and consider a range of options before starting repossession proceedings. This is not simply goodwill: a lender that has not tried reasonable alternatives is less likely to succeed if it later asks a court for a possession order. Forbearance also tends to cost lenders less than court action and a forced sale, so it is generally in everyone’s interest to find a workable plan.
Common types of forbearance
- Payment arrangement. You repay arrears gradually alongside your normal payments, usually over months rather than years.
- Temporary payment reduction. Your payments are lowered for an agreed period, often for a few months, with the shortfall added to what you owe later.
- Switching to interest-only. For a set period, you pay only the interest, which lowers the monthly cost but does not reduce the balance.
- Term extension. Spreading the mortgage over a longer period lowers monthly payments, though it usually means paying more interest overall.
- Capitalising arrears. Adding missed payments to your mortgage balance so the account shows as up to date.
- Payment holiday. A short pause in payments, used sparingly and usually only in specific circumstances, since the missed amount still has to be repaid.
Which of these, if any, your lender offers depends on your account. Some may combine two approaches, for example a temporary reduction followed by a payment arrangement once your income recovers.
How forbearance can affect your credit file
Forbearance is intended to help, but some arrangements are still recorded on your credit file, particularly if your payments are reduced below the contractual amount or your account shows as being managed under an arrangement. Ask your lender exactly how any arrangement will be reported before you agree to it.
Missed payments that occurred before forbearance was agreed will still show on your file for 6 years from when they were recorded, whatever forbearance is agreed afterwards. Forbearance addresses the account going forward; it does not remove the history of what has already happened.
What if forbearance is not enough
Forbearance is meant to give you breathing room, but it does not always resolve things on its own, particularly if your income has fallen and is unlikely to recover quickly. If arrears keep building despite an arrangement, it is worth reviewing the situation with your lender again rather than letting a plan you cannot keep up with run on. Our guide on how many months of arrears before repossession explains that lenders must exhaust reasonable forbearance options before repossession becomes realistic, but that a broken arrangement can still move things closer to that stage.
If forbearance genuinely is not going to be enough, selling with mortgage arrears while you still have some control over the process is often a better outcome than waiting to see what happens next.
How long forbearance usually lasts
Most forbearance arrangements are temporary and reviewed periodically, often every few months, to check whether they are still needed or whether your circumstances have changed. A term extension or capitalised amount can be permanent unless you later reverse it, for example by overpaying once you are able to.
| Type | How long it typically runs | Effect on total cost |
|---|---|---|
| Payment arrangement | Until arrears are cleared | Limited, as the debt itself does not usually grow |
| Temporary reduction | A set short period, then reviewed | Shortfall is usually added to what you owe |
| Interest-only switch | A set period | Balance does not reduce during this time |
| Term extension | Can be for the rest of the mortgage | More interest paid overall |
| Capitalising | Permanent unless later reversed | Slightly higher balance and payments |
This table is a general guide. Ask your lender for the specific terms and duration of anything offered to you.
What forbearance means if you want to remortgage later
Being on a forbearance arrangement, or having been on one in the past, is not the same as being in current arrears, but it is something a new lender will usually want to understand. If your arrangement has ended and your account has been up to date since, many lenders will look at your history since then rather than the arrangement itself. Our hub page on remortgaging with mortgage arrears explains how lenders generally view current versus historic arrears, and remortgaging with a payment arrangement looks at that situation specifically.
If your current deal is ending and forbearance means you are worried a new lender will decline you, a product transfer with your existing lender may still be possible. Because you are not borrowing more, FCA rules allow lenders to offer existing customers a new deal without a full affordability assessment, though a lender can still decide what it offers someone with a forbearance history. See product transfers with bad credit for more on this route.
Getting advice alongside forbearance
Forbearance is agreed with your lender, but it is worth getting free, independent advice at the same time, especially before agreeing to a longer-term change such as extending your mortgage term. MoneyHelper, StepChange and National Debtline can help you check that any arrangement is genuinely affordable and look at the wider picture, including any other debts you are managing. If arrears are still building despite forbearance, read how to clear mortgage arrears for further options.
Frequently asked questions
Is mortgage forbearance the same as a payment holiday?
No. A payment holiday is one specific, short-term type of forbearance where payments pause temporarily, with the missed amount added to what you owe afterwards. Forbearance is the broader term covering several options, including payment arrangements, temporary reductions, term extensions and switching to interest-only for a period.
Will forbearance show on my credit file?
It can. Some arrangements, particularly reduced payments, capitalised arrears or an account managed under a formal arrangement, are recorded on your credit file and visible to other lenders. Ask your lender exactly how any forbearance will be reported, and for how long, before you agree to it.
Does my lender have to offer forbearance?
Lenders must consider forbearance and treat repossession as a genuine last resort, but they are not required to offer any specific arrangement, and they decide what is workable for your account. What is realistic depends on your income, how much you owe and your payment history with that lender.
Can I ask for forbearance before I actually miss a payment?
Yes, and it is often easier to arrange before you actually miss a payment. Contacting your lender as soon as you know you may struggle, rather than waiting until you fall behind, generally gives you more options and avoids arrears building up on your credit file in the meantime.
Does forbearance affect my chances of remortgaging later?
It can, though a completed arrangement followed by a clean payment record since is usually viewed more favourably by lenders than ongoing current arrears. See remortgaging with mortgage arrears for how lenders generally treat historic arrangements compared with current difficulty.