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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.
Types of repayment plan
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What is a mortgage repayment plan?
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 call 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 call 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: 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.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.
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.
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 Internet 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.
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.