Paying off your Interest Only Mortgage
Let’s go through your repayment plan options…
As the name suggests, with an interest only mortgage, you only pay interest charges on the amount of money you borrow. This means your actual loan amount isn’t repaid or reduced.
So when that mortgage comes to an end, you’ll still owe whatever you borrowed. To pay off your mortgage balance in full, you need a repayment plan in place.
Why a mortgage repayment plan is important
If you’re unable to repay in full at the end of your mortgage, your home may need to be sold to pay back the outstanding balance. Should you wish to pay off your mortgage without selling up, it’s important to have a repayment plan which shows how you intend to do so.
It’s never too soon to start your repayment plan
To encourage all our interest only customers to start a repayment plan, we keep in touch to find out how you intend to repay your loan – and if needed, offer assistance and support.
We also urge customers to keep in touch and update us on any changes to their plans. That way, we can help you be ready when your interest only mortgage ends.
If your repayment plan is already up and running
If you’ve already taken steps to get a mortgage repayment plan up and running – and feel confident you can pay off your mortgage when it ends – we’d still like to hear from you.
Whether it’s an endowment policy, savings, pension policy or sale of property, we recommend you fill in a Repayment Intentions Form and let us know.
Keep in touch and keep us informed
If you’re at all concerned about paying off of your interest only mortgage, then please speak to one of our team as soon as possible. We can take you through the options open to you and agree the next steps to take. For example, something we could recommend would be speaking to our mortgage consultants to review your current mortgage arrangements.
For options on repaying your interest only mortgage
0113 2257966 (option 1)