Customers with interest only mortgages

Repaying your mortgage at the end of your term

Is all or part of your Co-operative Bank or Britannia mortgage on an interest only basis? If so, this means your monthly payment pays only the interest charges on your loan. It is important that you plan how you will repay the outstanding balance on your mortgage at the end of the mortgage term.

You should regularly review your repayment plans to ensure they remain on track to provide sufficient funds to repay your mortgage in full at the end of the term. If your plans are not on track it is important to make alternative arrangements now. If you have insufficient funds to repay your mortgage at the end of the term it may be necessary to sell your property.

Worried about repaying your mortgage?

Don’t delay - the sooner you take action the better. There are a number of ways to close the gap between your outstanding mortgage balance and the value of your current repayment plan e.g. an investment or savings scheme (such as ISA, endowment policy or pension lump sum) which is used to repay an interest only mortgage at the end of the term. In addition, the following options are available:


You could convert some or all of the outstanding balance of your loan to a capital & interest repayment mortgage over a term suitable and affordable to you. We will not charge you for switching from an interest only mortgage to a capital & interest repayment mortgage. This option will ensure that your mortgage will be repaid at the end of the term. If you wish to discuss this matter further please contact us on 08000 288 288 . Call charges.


Making additional payments will reduce the outstanding mortgage balance, which in turn will reduce the amount of interest you are charged and leave you with less to pay when the term expires. Early repayment charges may apply and the details of these will be stated in your original mortgage documentation.

Take a later life mortgage

This is a way of releasing money from your home without having to move. The money released will be in the form of a loan secured against your home and must be used to repay your existing mortgage balance with us. We don’t provide later life mortgages; however, we have partnered with Legal & General for them to provide the option to offer their later life mortgage products to our customers. More information can be found here, or please contact us for more information. This only applies if you have a residential mortgage.

Discuss your mortgage

Get advice from our friendly mortgage advisers.

Existing mortgage customers

Call us on 08000 288 288 (call charges).

Independent Financial Advice

If you have concerns regarding your existing repayment plan or require advice on suitable plans we strongly recommend that you seek advice from an Independent Financial Adviser.

For useful information and free impartial advice about interest only mortgages, visit the MoneyHelper.

Please remember it is your responsibility to ensure that you have enough funds to repay your mortgage at the end of the term.

Your home may be repossessed if you do not keep up with repayments on your mortgage

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