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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 8951
Our lines are open Monday to Friday 8am to 8pm and Saturday 8am to 1pm.
Types of repayment plan
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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.
What is a mortgage repayment plan?
Repayment plans
Things to consider
Repayment plans
Switch to a repayment mortgage
Things to consider
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 call us on 0345 727 3747. We’ll look at your income and how much you spend each month to understand if this is an affordable option for you.
Repayment plans
Overpayments
Things to consider
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 online banking. Or you can call us on 0345 727 3747. If you bank elsewhere, please ask your bank to set up your payments using the following information:
Sort code: 30 00 00
Account number: 00332275
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.If you'd like the payments 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.
Repayment plans
Sale of your main or second property
Things to consider
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.
Repayment plans
Savings
Things to consider
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.
Repayment plans
Premium Bonds
Things to consider
It’s important to understand that prize money isn’t guaranteed.
Repayment plans
Endowment Policies
Things to consider
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.
Repayment plans
Investments
Things to consider
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.
Repayment plans
Pension
Things to consider
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.
Repayment plans
Sale of a business or other assets
Things to consider
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.
Repayment plans
Bonus
Things to consider
Changes in any bonus you expect to receive may affect your ability to repay your mortgage.
Understand how much and when you need to repay
Make sure your chosen plans will provide enough and importantly that you’ll be able to get the money when you need it. If you’re registered for online banking you can see your mortgage account balance and statements online. Your balance will also be on the statements and letters we send you. Or you can call us and ask.
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 four 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 four 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 eight 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 eight 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 yourself will be based on your individual circumstances.