See how your payment and total interest change when you restructure a loan — extending the term or taking a payment holiday lowers the monthly payment but raises the interest you pay overall.
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Enter the balance, rate, remaining term and new term. Add a grace period if you are taking one.
⟳New payment/ month
1,348.24£
Current payment1,741.63 £
Payment change-393 £
Extra interest+33,688 £
New total interest92,684 £
Estimate at a fixed rate. Restructuring changes your current contract (it is not refinancing). Extending the term lowers the payment but raises total interest; a payment holiday capitalises interest and grows the balance.
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What changes when you restructure a loan. Enter the outstanding balance, rate, remaining term and new term (plus any grace period) — see the new payment, how much the payment falls and how much extra interest you pay. Instant in-browser calculation, no account.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
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iHow it is calculated
Restructuring changes your existing contract: extending the term lowers the monthly payment but raises total interest; a grace period (payment holiday) defers payment and capitalises the unpaid interest onto the balance:
extra interest = new total interest − interest left on the current deal
Extending the remaining term cuts the monthly payment but spreads interest over more months, so total interest rises. A payment holiday pauses the payment, but the unpaid interest is added to the balance, which then grows.
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?Frequently asked questions
Is restructuring the same as refinancing?
No. Restructuring changes your existing contract with the same lender. Refinancing (remortgaging) is a brand-new loan that pays off the old one, usually at a different rate or with a different lender.
Why does total interest rise when the payment falls?
Extending the term repays the principal more slowly, so you pay interest over more months. The monthly payment drops, but the total interest you pay goes up.
What is a payment holiday?
A grace period where you pause payments for a time. The unpaid interest is usually capitalised — added to the balance — so the debt grows during the holiday and you pay interest on it later.
What is the Mortgage Charter?
A 2023 UK agreement letting borrowers extend the term, switch to interest-only for six months, and avoid repossession within twelve months of a first missed payment. It sits alongside the FCA Consumer Duty forbearance rules.
Will restructuring affect my credit file?
It can be recorded as a change to your agreement. It is usually better than missing payments, but ask the lender how it will be reported to the credit reference agencies before you sign.
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