Interest only
The monthly payments you make only cover the interest. This means you need to pay off the amount you borrowed by the end of the mortgage term.
If you don’t, you might not be able to pay off the amount you borrowed by the end of the mortgage term.
If you have a repayment plan, you need to check it regularly to make sure it’s on track. We recommend that you do this at least once a year.
If you don’t have a plan or you’re worried that it might not be enough, we can help. Call our team on 01252 812 271 (Option 6). Phone lines are open between 9am and 5pm Monday to Friday, excluding bank holidays.
As your mortgage approaches the end of its term, we’ll try to get in touch with you to understand your circumstances. We’ll assess your financial position and look at ways to help you pay back the remaining balance. If this isn’t possible, you may need to sell your property.
If we can’t get in touch with you or you are unable to repay the loan in full, we may have no choice but to tell our solicitors to take legal action. This could result in you losing your property. Taking legal action is always a last resort.
You could convert all or part of your mortgage to repayment, so you pay off both the interest and the capital you’ve borrowed. This will increase your monthly payments, so we’d need to make sure that it’s affordable. You can speak to our team by calling 01252 812 271 (Option 6). Phone lines are open between 9am and 5pm Monday to Friday, excluding bank holidays.
Important things to consider
- The shorter the term remaining on your mortgage, the higher your monthly payment. You need to make sure you’ll be able to keep up the higher monthly payments.
- If you switch your mortgage to full repayment and maintain all future payments and you don’t have any outstanding fees, you’ll have paid it off in full by the end of the term.
- We can’t offer financial advice. If you’re unsure of the best option for you, we’d recommend speaking to a financial or mortgage advisor. We’ve also got some independent sources of help and support listed in the Independent Support section of our Support page.
You can find more information about switching to repayment in the Changing repayment type section of our Manage Account page.
Ways we can help (interest only mortgages)
You could convert all or part of your mortgage to repayment, so you pay off both the interest and the capital you’ve borrowed. This will increase your monthly payments, so we’d need to make sure that it’s affordable. You can speak to our team by calling 01252 812 271 (Option 6). Phone lines are open between 9am and 5pm Monday to Friday, excluding bank holidays.
Important things to consider
- The shorter the term remaining on your mortgage, the higher your monthly payment. You need to make sure you’ll be able to keep up the higher monthly payments.
- If you switch your mortgage to full repayment and maintain all future payments and you don’t have any outstanding fees, you’ll have paid it off in full by the end of the term.
- We can’t offer financial advice. If you’re unsure of the best option for you, we’d recommend speaking to a financial or mortgage advisor. We’ve also got some independent sources of help and support listed in the Independent Support section of our Support page.
You can find more information about switching to repayment in the Changing repayment type section of our Manage Account page.