Make a plan to make sure you own your home

By the time your mortgage ends, you’ll need to repay the full interest only balance.

Be prepared for when your mortgage ends

Don’t leave it too late – The end of your mortgage may seem a long way off, but the sooner you act, the more options you’ll have to choose from. You may even pay less interest.

Ways to repay your interest only mortgage

From using investments to making overpayments, watch our video to find out the different ways you can repay your mortgage.

The sooner you talk to us, the more options you may have.

Call us on 0345 609 8953

Our lines are open Monday to Friday 8am to 8pm and Saturday 8am to 1pm.

Interest only mortgage video

By acting now

  • You may have more options to choose from.
  • If you switch to a repayment mortgage, the increase in your monthly payment will be smaller.
  • If you start making overpayments earlier, these overpayments can be smaller.
  • If you’re selling your home, you’ll have longer to prepare for the sale.

By leaving it later

  • You might have to cash in investments quickly.
  • You might not have the option to switch to a repayment mortgage as the increase in your monthly payments may not be affordable.
  • You might not be able to afford to make enough overpayments to clear your interest only balance before the end of the mortgage term.
  • You might have no choice but to sell your home.

Types of repayment plans
 

  • By the end of the mortgage, you’ll need to repay the full interest only balance. There are many different plans you can put in place to repay the balance and we’ve listed some of these below. When considering your options, you should make sure that your plan will provide enough to repay the balance and importantly, be available when you need to make the final payment.
     

    Repayment plans Things to consider
    Switch to a repayment mortgage

    Switching all, or some of your mortgage to a repayment mortgage means you’ll start paying off the amount you borrowed, as well as the interest. If you switch your whole mortgage to repayment, we’ll set your monthly payment to repay everything you owe by the end of your mortgage term. If you switch part of your mortgage, you’ll reduce the amount you’ll need to repay by the end. 

    Use our change to a repayment mortgage calculator to work out how changing to a repayment mortgage could benefit you.

    To switch to repayment, please contact us. We’ll look at your income and how much you spend each month to understand if this is an affordable option for you.
    Overpayments When you make overpayments to your mortgage, you’ll reduce the amount you owe and pay less interest. The sooner you start making overpayments, the sooner you’ll start reducing the interest only balance. Use our overpayment calculator to work out how overpaying on your interest only mortgage could benefit you.

    If you have a current account with us, you can make overpayments using Internet Banking. Or you can contact us. If you bank elsewhere, please ask your bank to set up your payments using the following information:

    Sort code: 30 00 00
    Account number: 00353019
    Reference number: Please use your mortgage account number and add 00 at the end. If you want the payment to go to a specific sub-account replace the final 00 with the 2 digit sub-account number.

    Early repayment charges may apply to your mortgage. Please check if you’re unsure if these apply.
    Sale of your main or second property House prices change regularly and may fall as well as rise. It’s important to be realistic about the value of your property and to allow enough time to complete the sale before your mortgage ends.
    Savings You should check your statements when you receive them to make sure you’ll have enough and can get access to the money when you need it.
    Premium Bonds It’s important to understand that prize money isn’t guaranteed.
    Endowment Policies You should check your statements when you receive them to make sure you’ll have enough and can get access to the money when you need it.
    Investments The value of any investment can change over time, falling as well as rising. You should check your statements when you receive them to make sure you’ll have enough and can get access to the money when you need it.
    Pension Using the lump-sum from your pension policy to repay some, or all, of your mortgage at the end of the term will impact the income you’ll have when you retire. If you’re unsure how this will affect your retirement income, you should speak to an independent financial advisor.

    Independent financial advisors
    Sale of a business or other assets The value of any business or assets you plan to sell can go down as well as up.  If you don’t get the amount you expect when you sell, it may affect your ability to repay.  It may take a while to sell your assets so you’ll need to plan for this in good time before your mortgage term ends.
    Bonus Changes in any bonus you expect to receive may affect your ability to repay your mortgage. 

     

Put a plan in place that’s right for you

Tell us your plans online

Or call us on 0345 609 8953. Our lines are open Monday to Friday 8am to 8pm and Saturday 8am to 1pm.

Interest only mortgage overpayment calculator

Use our calculator to see how overpaying on an interest only mortgage can save you money. You could reduce your mortgage balance and the amount of interest charged.

Overpayment calculator

Change to a repayment mortgage calculator

Use our calculator to see what your payments might be if you change your interest only mortgage to a full or part repayment mortgage.

Repayment calculator

Could you switch your current deal?

You could still switch to a new deal even if you’re not sure how you’ll repay your full balance at the end of your mortgage term.

If you’re worried about how you’ll repay your mortgage we can help you understand your options, call us on 0345 609 8953.

Switch to a new deal Switch to a new deal


Case studies

How we've helped our customers

Every day we help customers who need to put plans in place. Even if you're approaching the end of your mortgage, it's never too late. You can also ask us to talk to a friend or family member you trust.

Mr & Mrs Murray

Mr & Mrs Murray planned to use an endowment policy to repay the interest only balance of £120,000 when their mortgage term ends in 4 years.

Their latest endowment statement showed their policy was only projected to be worth £85,000 at maturity, meaning they wouldn’t have enough to repay the full balance.

Mrs Murray called us to understand their options for repaying the difference of £35,000.

After discussing their monthly income and expenses, we agreed they could afford to switch all, or some, of their mortgage to repayment.

Mr & Mrs Murray decided to use their endowment policy to repay £85,000 of the interest only balance and we agreed to switch the remaining £35,000 to repayment over 4 years. This meant they could repay all their mortgage when they originally planned to.

Ms Edwards

Ms Edwards has a part repayment and part interest only mortgage of £65,000. She intends to use the money from an endowment policy to repay the interest only balance of £30,000.

Although the projected value of the policy is enough to repay the balance, the policy doesn’t mature until 8 months after the interest only part of her mortgage ends.

Ms Edwards called us to understand if she could extend the interest only part of the mortgage until she has access to the money from her endowment policy. She was happy to continue with the repayment part of her mortgage.

After discussing her situation, we agreed to extend the interest only term by 8 months once we had received a copy of her latest policy statement. This will allow Ms Edwards to pay the interest only balance in full once the money from her endowment becomes available.

The names shown above have been changed, but these are examples of real customer experiences. Any options we discuss with you, will be based on your individual circumstances.

Where can I find independent help and advice?

Although we're always here to talk to you about your mortgage, there are other people you can talk to for free and impartial help and advice. These include:

You can find a list of independent financial advisors at unbiased.co.uk.