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 the Bank of England (BoE) base rate changes, or you apply to switch to a new mortgage deal 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.

    Current mortgage balance

    £100,000

    £300,000

    Current mortgage balance

    Current Interest rate

    £100,000

    5%

    £300,000

    5%

    Current mortgage balance

    Remaining term

    £100,000

    15 years

    £300,000

    30 years

    Current mortgage balance

    Current monthly payment

    £100,000

    £790.79

    £300,000

    £1610.46

    Current mortgage balance

    Temporary interest only monthly payment

    £100,000

    £416.67

    £300,000

    £1250.00

    Current mortgage balance

    Temporary reduction in monthly payment

    £100,000

    £374.13

    £300,000

    £360.46

    Current mortgage balance

    New monthly payment
    (After 6 months of reduced payments)

    £100,000

    £809.15

    £300,000

    £1622.28

    Current mortgage balance

    Current total mortgage cost
    (Original amount borrowed plus interest)

    £100,000

    £142,342.85

    £300,000

    £579,767.35

    Current mortgage balance

    New total mortgage cost
    (After 6 months of reduced payments)

    £100,000

    £143,291.63

    £300,000

    £581,788.15

    Current mortgage balance

    £100,000

    Current Interest rate

    5%

    Remaining term

    15 years

    Current monthly payment

    £790.79

    Temporary interest only monthly payment

    £416.67

    Temporary reduction in monthly payment

    £374.13

    New monthly payment
    (After 6 months of reduced payments)

    £809.15

    Current total mortgage cost
    (Original amount borrowed plus interest)

    £142,342.85

    New total mortgage cost
    (After 6 months of reduced payments)

    £143,291.63

    Current mortgage balance

    £300,000

    Current Interest rate

    5%

    Remaining term

    30 years

    Current monthly payment

    £1610.46

    Temporary interest only monthly payment

    £1250.00

    Temporary reduction in monthly payment

    £360.46

    New monthly payment
    (After 6 months of reduced payments)

    £1622.28

    Current total mortgage cost
    (Original amount borrowed plus interest)

    £579,767.35

    New total mortgage cost
    (After 6 months of reduced payments)

    £581,788.15

    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
  • haven’t got an application to borrow more on your mortgage in progress
  • have consent from everyone named on your mortgage.

How do I apply?

Use our calculator to see you how much your new payments could be, and the impact making interest only payments for six months will have on your mortgage. After you've used our interest only payment calculator, you can use our online form to apply.

Interest only calculator

Other available support options

We’ve got other options available that could help you stay on top of your mortgage payments.

Other support options

Can’t make your mortgage payments?

We're here to help you figure this out. The sooner you get in touch to let us know, the more options you’ll have.

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