By the time your mortgage ends, you’ll need to repay the full interest only balance.
If you don't know how you’ll repay it, or don't think your plans will provide enough – call us today and we’ll help you understand your options.
From using investments to making overpayments, there are many different ways you can repay your mortgage.
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.
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.
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 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 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.