If you’ve got an interest-only mortgage with Halifax, it’s important you have a plan in place to pay the lump sum when it ends. If you haven’t got a plan, or you’re worried you won’t have enough to repay it, let us know – we're here to help.
With repayment mortgages, you pay off the interest and some of the capital each month, by the end of the term paying off the mortgage in full.
With interest-only mortgages, you only pay off the interest on the amount you borrow. You then have to pay the full amount.
If your interest-only mortgage is coming to an end, let us know – we are here to help – tell us what your plan is to repay it. This could be anything from an endowment plan to selling assets you own to repay it.
If you’re worried about it, tell us so we can help as soon as possible. There are various options available if you think you have a shortfall. The sooner you act, the sooner we can help you get back on track.
If you’ve had a letter from us about your plans to repay, or you’ve got any questions, get in touch – we’re here to help. The sooner you call, the sooner we can help.
Lines are open Monday 8am to 8pm, and Saturday 8am to 1pm.
An interest-only mortgage means you only pay interest - you then repay the lump sum you've borrowed at the end. With a repayment mortgage, the payments include interest and the main loan and the whole amount is paid in full at the end of the term.
Let us know what your plan is to repay. You can update us with your plan to repay the mortgage by clicking on the link:
We know how important your home is to you – we want to make sure you have a repayment plan in place for your peace of mind.
So give us a call sooner rather than later to discuss your options.
Let us know – we are here to help.
We can run through your options – we don’t judge – if you are worried you won’t be able to pay your mortgage at the end of its term.
Our specialist team solely deals with interest only customers who can’t repay.
We’ll listen to you and walk you through the options available.
Before you call, make sure you have your income details, and what you owe. We’ll need to know how much you are repaying to creditors, and what is left to pay.
The value of an investment could rise or fall; therefore you may want to consult an independent financial advisor. A list of independent financial advisors can be found at www.unbiased.co.uk
If you’re planning to sell your property to repay, don’t forget the value of your house depends on house prices at the time of sale.
If you can’t sell for the expected amount, you could be unable to pay off your mortgage in full and may not have enough equity to buy another property.
You’ll need to put the property up for sale before the end of the mortgage so a sale can be agreed and completed by the end of the term.
Yes. You can either make a lump sum overpayment or set up regular overpayments, but first check your mortgage details to see if an Early Repayment Charge (ERC) applies.
You can make lump sum overpayments online, paying in branch or call us to make a debit card payment.
If you’d like to set up a regular overpayment via standing order please contact your bank to set this up or if you would like to set a up a direct debit to do this, please call us on 0345 603 1637 and we’ll set this up.
If you are able to pay your whole balance in one go, then please call us on 0345 603 1637 and ask for a redemption figure – this is the total needed to pay off the mortgage in full.We’ll then tell you the full and final payment amount and tell you how you can pay it.
Your redemption figure will depend on the date you can repay, so please have the date ready when you call us.
Get in touch as soon as possible. The earlier you call, the more options are available to you. We can talk to you and support you through your options.
If your mortgage expires and we don’t hear from you, you could face legal action and possibly repossession.
You can get free advice from the Money Advice Service.
Let us know – we are here to help.
We can run through the options available to you – we don’t judge – if you are worried you won’t be able to pay your mortgage at the end of its term. Our team only deals with interest-only customers who can’t repay their mortgage. We’ll listen and talk about what we can do. We’ll need to discuss your finances, to make sure your existing mortgage works for you, and let you know what we can do to help.
We’ll talk about:
This is completely free and we’ll need to talk to you about your circumstances and your money.
To make things quicker, please have these details to hand:
Repossession is always only a last resort – we want to work with you to help.
However, you may have to sell your home to repay your mortgage if you don't have an alternative repayment plan.
Get in touch on 0808 145 0382 – let us help you.
* The names shown below have been changed, but the case studies are examples of a real customer experience. Any options we may suggest will be based on your individual circumstances.
Mrs Fowler, 60, had an interest-only mortgage that was due to expire. But she still owed £210,000. She planned to retire in 10 years’ time.
Mrs Fowler had invested in stocks and shares to build up funds to pay the mortgage balance. But a few years ago a couple of life events resulted in some large bills. She used her stocks and share money to cover these costs.
Mrs Fowler was now £120,000 short on the mortgage balance.
She was worried she would lose her property, so decided to call Halifax.
How we helped Mrs Fowler
Mrs Fowler spoke to George who listened to her situation. He could see how her life events had resulted in a lot of money worries.
George was a qualified mortgage advisor. He explained Mrs Fowler’s options and what impact they would have on her credit file.
He worked out that once Mrs Fowler had paid all her monthly costs, she had enough money left to increase her mortgage payments.
Mrs Fowler could move on to a full repayment mortgage. She would be able to pay off the mortgage just before she retires in 10 years’ time.
25 years ago Amy and Steve Rowland took out an interest-only mortgage. It was due to expire in 12 months. Their original plan was to pay off the balance by selling the property and downsizing.
Amy and Steve are living in the property with their teenage children. Both will finish school in the next 18 months. Amy and Steve do not want to move until after this.
The outstanding balance is £150,000. The property is valued at £260,000, so there is plenty of equity to release. But this doesn't help while they live there.
Amy decided to phone Halifax to explain the situation.
How we helped the Rowlands
Amy spoke to Megan who listened to their situation.
Megan is a qualified mortgage advisor. She explained the Rowlands’ options and what impact they would have on their credit file. She looked at their money and worked out that Amy and Steve could remain on an interest-only mortgage.
Megan agreed to extend the term by six months. By this time the children would have finished school.
Once the property was on the market, Halifax would be able to extend the term again to allow time to sell the property.
You might be finding it difficult to pay off your interest-only mortgage. This might be because of an endowment failing. Maybe you were planning to sell but your plans have changed. If you’d like help understanding your options call us on 0808 145 0378.