Interest only mortgage

Yes, you can make overpayments.  You can login online or via the app on to Manage my Mortgage to make the payment or alternatively you can contact us directly.

Yes, you could switch some or all of your interest only mortgage to a repayment mortgage (also known as a capital repayment mortgage) if this is suitable for you and you meet our criteria. We will not charge you a fee to do this, although you will see an increase in your monthly mortgage payments. 

You can contact us directly to find out more.

You could switch to an interest only mortgage from a repayment mortgage but there are some considerations. It will depend on whether you meet our mortgage criteria and also have a repayment plan in place to ensure you can settle the mortgage loan at the end of the term.

You can contact us to find out more about this option.

There are ways to get back on track if you find yourself falling behind on your repayment plan. You could potentially increase your monthly payments to lower the remaining capital owed, use savings to pay off the capital or change your plan to a repayment mortgage (either the whole mortgage or just part of it).

These options are dependent on your financial situation however. As an example, it will depend on how long there is left to run on your mortgage term and whether or not you have any investment funds or savings available to use.

As house prices have fallen in recent years, we recommend that you don’t assume your property will have risen in value over the duration of your mortgage.

Regularly monitor whether or not you’re on target to repay your capital by the end of the agreement. For anyone worried they’ve fallen behind you can seek free financial advice from MoneyHelper.

We have a friendly UK-based team that you can contact to discuss your financial worries. Whether you’re concerned your repayment plan is unrealistic, or if you don’t yet have a repayment plan set up or if there are simply delays with your repayment plan funds being received, then we’re here to help and ensure you fully understand your commitments.

We’ll listen to you and walk you through the options available to help. You don’t have to have missed a payment to benefit from discussing your worries.

Any concerns are easier to resolve the earlier you let us know. That’s why you don’t have to have missed a payment to seek advice from us. We’ll always listen to your situation and talk you through your options.

For those struggling to pay off a repayment mortgage, we’ve got free advice that could help.

Specialist independent Financial Advisers are also available or the government’s MoneyHelper website is a great free alternative resource.

You may try to sell your home and an issue has arisen which has made it difficult to sell the property, for example, cladding issues etc. If this affects you then please call our UK based team and we’ll walk you through the options available to help. Any concerns are easier to resolve the earlier you let us know. We’ll always listen to your situation and talk you through your options.

It is possible, but would be dependent on your financial circumstances. Contact us if this is something that you would like to investigate further.

Please contact us straight away so we can discuss how we can help you. We have a variety of options that we can talk through to figure out which is most suitable for you. For more information please visit our free advice page for help.

Call our UK based team and we’ll walk you through the options available to help. Any concerns are easier to resolve the earlier you let us know. The case study below is an example of how we have recently helped customers. We have removed their name and personal details to protect their privacy. Not all the solutions suggested in this case study will suit everyone’s circumstances.

We helped Mr X take control of his mortgage and plan to own his home at the end of the term.

With no plans in place to pay his interest only mortgage, Mr X contacted one of our interest only specialists to discuss his circumstances and to try and find a solution.

Mr X said that although he regularly repays his interest only payments each month he was worried about what would happen when his mortgage came to an end. He had no way of repaying his total mortgage amount.

After discussions over the phone about his circumstances and current budget we recommended a solution that was right for him:

To change from interest only to a repayment mortgage – although this increased his monthly payment, every mortgage payment he makes will reduce the amount he owes

To increase the term of his mortgage so it’s more affordable. He may pay more for his mortgage, however he’ll own his home outright at the end of the term

This solution, which was tailored to his needs, meant that monthly payments are a figure he’s comfortable with, and he now feels in control of his mortgage.

A summary:

Before:

• He’d need approximately £212,000 to repay his mortgage at the end of term

• One way to fund this would be to look for alternative borrowing, such as an unsecured loan

• An alternative would have been to sell his home to repay the mortgage

After:

• By discussing his current needs and circumstances, we were able to agree a monthly mortgage payment that Mr X was comfortable with

• As long as his mortgage payments are made in full and on time, he’ll own his home outright at the end of the new term

If I have concerns, who can I talk to?

We have a friendly UK-based team that you can contact to discuss your financial worries. Whether you’re concerned your repayment plan is unrealistic, or if you don’t yet have a repayment plan set up or if there are simply delays with your repayment plan funds being received, then we’re here to help and ensure you fully understand your commitments.

We’ll listen to you and walk you through the options available to help. You don’t have to have missed a payment to benefit from discussing your worries.

Any concerns are easier to resolve the earlier you let us know. That’s why you don’t have to have missed a payment to seek advice from us. We’ll always listen to your situation and talk you through your options.

For those struggling to pay off a repayment mortgage, we’ve got free advice that could help.

Specialist independent Financial Advisers are also available or the government’s MoneyHelper website is a great free alternative resource.