Check If You Qualify

Is a mortgage holiday worth it in the long run?

Sharon McDougall - Updated - 2nd May 2024 - 2 minutes to read

How do mortgage holidays work?

When you take a mortgage holiday it means you’re deferring the payments until a later date. Under the current conditions, you can apply for a payment break on your mortgage for up to six months.

Your lender will explain how the missed repayments can be made – this might be by increasing monthly payments for a fixed period, for example, or adding the total sum missed to the end of your mortgage.

If your remaining mortgage term is lengthy, the additional amounts may have less impact on your monthly repayment when you begin making payments again; however, taking a mortgage holiday will still cost you more in interest over the life of the loan.

Should the remaining time of your mortgage be shorter, however, your new monthly repayments could be significantly higher following the mortgage holiday as there will be less time available to repay the missed payments.

Also bear in mind that interest on the missed payments continues to accrue during a mortgage holiday. Sometimes lenders also offer the ability to pay only capital or interest payments for a period, to relieve the financial pressure on customers.

Scotland Debt Calculator

Get a rough indication of what your repayments might be under each of our different debt solutions.

Your Total Debt

£0 - £5,000

£5,000 - £10,000

£10,000 - £20,000


Your Employment Status

I am employed

I am self-employed

I am unemployed

I am a student

I am retired

Your Total Monthly Income

£0 - £1,000

£1,000 - £2,000

£2,000 - £3,000


What can you pay monthly towards your debt?

£0 - £100

£100 - £200

£200 - £300


Is it worth applying for a mortgage payment break?

In some cases a mortgage holiday will be essential to prevent the loss of a home. It offers valuable support when finances are so affected that perhaps bankruptcy is the only end result, or the damaging effects of debt on a homeowner’s mental/physical health are too much.

If you can meet your mortgage repayments, however, it’s advisable to do so even if other creditors such as credit card or store card companies are given a lower priority. Scotland offers various debt remedies where unsecured debts have become unmanageable.

Deferring payments does have implications for your financial stability in later months as you need to make them at some point, so in the long run it may not make sense to take a mortgage holiday.

How to decide if a mortgage holiday is worth it

If you’re unsure whether to apply for a mortgage holiday, it’s advisable to seek professional debt help – perhaps from a debt charity or licensed insolvency practitioners (IPs). Scotland Debt Solutions offers free same-day meetings and can quickly assess your best options.

In reality, a mortgage holiday only defers payments for up to six months - it’s intended to provide temporary breathing space for homeowners in severe financial difficulty rather than be a long-term solution to serious debt problems. It will always cost more in the long run, but in some cases is vital to prevent repossession whilst easing immediate financial pressures.

Formal debt solutions available in Scotland, such as the Debt Arrangement Scheme (DAS) or Scottish Trust Deed, could help you to restructure your other debts, thereby freeing up money to keep up with your monthly mortgage repayments.

For more information on whether a mortgage holiday may be worth it for you in the long-term, please call our team of licensed insolvency practitioners. Scotland Debt Solutions specialises in helping Scottish residents deal with debt, and can provide the reliable guidance you need.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall


Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...


Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser


We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.


Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office


We can help you with...



Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners