Whether you decide to take a mortgage holiday during the financial difficulty of Covid-19, you must contact your lender before cancelling standing orders or direct debits. A formal agreement between you and your lender needs to be made, as to how long you want your “holiday” to last.
If you stop payments without any contact to your lender, it will be recorded as a late payment and affect your credit score.
If you do take a mortgage holiday, you will still be charged interest but it’s added to the total cost. You won’t have to pay it back immediately, it will be added to your monthly cost once you start paying the mortgage again after your “holiday”.