It’s important you have a repayment plan in place to repay your interest only mortgage when it ends. If you don’t have a plan, you can think about these options:
Switch to repayment
Convert part or all of your interest only mortgage to repayment so it pays off the interest and the capital. You can apply to do this in our mobile app or in Online Banking. Simply log on, choose your mortgage account and then ‘Manage my mortgage’.
Make overpayments on your mortgage to reduce the capital balance. You can do this easily online using Online or Mobile Banking
Sell your home
If you’re planning to sell your home you should put your house on the market 6 months before your mortgage ends. Make sure once you’ve sold your home you’ll have enough money to pay off your mortgage and money left over to buy another home.
What to do if you’re worried about repaying your interest only mortgage when it ends
If you can’t afford to pay back the mortgage balance outstanding at the end of your mortgage term, you may have to sell your property or face repossession.
If you want to talk to us about making changes to your interest only mortgage please call us on 0800 012 1583.
If you are experiencing financial difficulties or your interest only mortgage is ending and you can’t repay, call us on 0800 731 6650. If we’re not able to assist you there may be other external options available. If you would like free and independent advice, you can contact these organisations:
Call 0800 138 7777 or visit the MoneyHelper site
Citizen's Advice Bureau
Call 0345 404 0506 or visit the Citizen's Advice Bureau site
Call 0808 808 4000 or visit The National Debtline site
The StepChange Debt Charity
Call 0800 138 1111 (free from all mobiles) or visit the StepChange site
Later life mortgages
We’ve partnered with Legal & General to offer you lifetime and retirement interest only mortgages.
Designed for customers aged 55 or over, a later life mortgage lets you borrow money based on the value of your home, as a loan secured against it, while you continue to live there. The loan is usually repaid when the last surviving borrower dies or moves out of the home into long-term care.
- With a lifetime mortgage you are able to decide whether you’d like to pay all, some or none of the interest each month.
- With a retirement interest only mortgage you must pay the interest in full each month. As a last resort, your home may be repossessed if you do not keep up with your payments.
There’s lots to consider so it’s important to receive financial advice to help you make the right decision. There may be cheaper ways to borrow money. Legal & General has its own team of specialist later life mortgage advisers, to help you find the right option for you. If you speak to one of their advisers, there’s no obligation to proceed.
Learn more about later life mortgages with Legal and General
Call us to discuss Legal & General later life mortgages on 0800 012 1583 (option 3).