If you’re struggling to pay your mortgage or worried you might struggle in the future, we’ll work hard to support you.
Switching to an interest-only mortgage means you'll only pay the interest on your mortgage, rather than repaying the capital and interest.
This is available for customers who are up to date with their payments and can be taken for up to 6 months. Following which, the mortgage will revert to your previous repayment method.
Please be aware that by requesting this change it will increase the cost of your mortgage in the long-run.
As part of the Mortgage Charter the need to complete affordability checks has been removed. You will need to consider when the mortgage reverts back to capital and interest that you are able to afford the increased payments for your remaining mortgage term. This is due to the capital payments you have missed for the 6 month period being repaid over your remaining mortgage term.
After your 6 month interest-only period has ended you will revert back to the original repayment structure you held before temporarily switching. At any point during this 6 month period you can contact us to change your mortgage back early if your situation has improved.
At the end of the 6 month period your mortgage account will switch back to capital and interest, meaning you will see an increase in your repayments.
We've created a useful table below which shows what your repayments would be if you switched to interest-only. If you would like to have a more detailed calculation specific to you, please contact us.
The below example is based on an interest rate of 7.75%.
* Monthly payment after the six month period of temporary interest only has concluded
** Total amount payable is based on six months interest only payments plus the 'Additional amount payable' paid over the remaining term
To be eligible for switching to interest-only you must confirm that:
If you are struggling, please get in touch with us to see how we can help by calling:
Co-operative Bank and Britannia mortgage holders – 08000 288 288
Platform, Mortgage Agency Services or Verso mortgage holders – 01752 236 243
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