Go paper-free
Amend paper-free preferences for your statements and correspondence.
Make interest only payments
Need a bit of time to get your budget back on track?
Switch to interest only payments for six months, with no impact on your credit score.
How it works
- You’ll make interest only payments towards your mortgage for six months, with no impact on your credit score.
- You can cancel at any point, but you can only apply once.
- Your monthly payments will increase at the end of the reduced payment period to collect the amount you haven’t paid.
- You’ll pay back more on your mortgage overall if you make interest only payments for six months.
- If you miss an interest only payment and don’t catch up, we might cancel the arrangement.
Your reduced monthly payment amount will be fixed
Your interest only payment amount will be fixed for six months - even if your mortgage rate changes during that time.
Usually, your interest only payments will be worked out using your current interest rate. However, if your rate’s due to change next month, we’ll use that rate instead.
Any other changes in interest rate will apply to your mortgage, but not your payments. Once your reduced payment period comes to an end, we’ll write to confirm your new increased monthly payment amount and total mortgage cost, including any interest added because of interest rate changes.
If you change your mind
If you decide to cancel the payment arrangement before the six months comes to an end, you can let us know by completing our cancellation form.
Please remember, you can only apply once.
-
Here are some examples of how making interest only payments for six months can impact your monthly payments and the total amount payable.
Important: Your monthly payment and total mortgage cost will increase at the end of the reduced payment period to collect the amount you haven’t paid.
These examples are for illustrative purposes only and assume there are no other changes to the mortgage over the remaining term.
Before you apply, make sure you:
- understand your monthly payment and total mortgage cost will increase at the end of the reduced payment period.
- are up to date with your payments and don’t have a Buy to Let mortgage.
- don’t already make interest only payments on all of your mortgage.
- aren’t currently taking a mortgage payment holiday.
- have consent from everyone named on your mortgage.
How will this impact my mortgage payments?
To find out how making interest only payments will impact your mortgage, please enter your details into our calculator.
You’ll be able to find the information we need on your latest mortgage statement or any letters we’ve sent you.
If you have multiple sub-accounts, you’ll need to enter their details individually and add the payment amounts together. What are sub-accounts?If you’ve made any changes to your mortgage, it could be a mix of different interest rates, terms, and balances. These are known as sub-accounts. Each sub-account has its own individual monthly payment, which we add together to make up your total monthly mortgage payment. You’ll be able to find out if you have sub-accounts on your latest mortgage statement or any letters we’ve sent you.
You must have at least six months left on your current mortgage to apply to switch to interest only payments.
If your interest rate is due to change next month, please use your new rate.
-
We use the following assumptions in the calculations:
- Multiple sub-accounts must be calculated individually.
- All years are of equal length.
- Interest is calculated monthly.
- Estimate of monthly payments are rounded to the nearest pound.
- There will not be any other changes to your mortgage which would result in a recalculation of your monthly payment.
- Your interest rate remains unchanged during the 6 months.