Interest Only Mortgages | NatWest

Interest only mortgages

Thinking about applying for an interest only mortgage? Learn more and find the best mortgage deal for you with NatWest.

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NatWest mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

 

 

 

 

 

 

 

 

Choosing an interest only mortgage


You’ll only pay the interest on your mortgage and nothing on the capital you borrowed. At the end of the mortgage term, you’ll still owe the full amount, so it’s important to have a repayment plan in place.

We may contact you from time to time to see if you’ll be able to pay off your mortgage at the end of the term. And it’s useful to keep the following in mind:

  • Review your repayment plan regularly to stay on track
  • Save more or switch to a repayment mortgage if your repayment plan is not right
  • Enjoy no additional charges when you switch to a repayment mortgage
  • Selling your home to repay the capital may not be enough as property prices rise and fall
  • Failing to sell at the value you expect, may leave you short on equity to buy another property
Planning repayment responsibly

Are customers generally able to pay back their interest only mortgages? According to the Financial Conduct Authority (FCA) they are. Their research shows that most people are able to repay their mortgage when it’s due.

But borrowers who need to repay their mortgages due to having no way to repay the mortgage in part or full, will have to take control of their repayment planning now. To help make that happen, the FCA, Council of Mortgage Lenders (CML) and the Building Societies Association (BSA) work together. And lenders like us will soon be in touch with our customers to make sure their repayment plans are on track.

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Frequently asked questions Your questions, answered

More about interest only mortgages

Protecting your money

We are a member of the Financial Services Compensation Scheme (FSCS). The Scheme can pay compensation to customers if they are eligible and the Bank is unable to pay claims against it. Compensation limits for Mortgage advice and arranging (for business conducted on or after 31 October 2004) - maximum £50,000 i.e. 100% of first £50,000 per person. Further information is available here  ( 650K PDF) or visit www.fscs.org.uk.

 

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