Support for our mortgage customers

We understand you might be worried about the rising costs of living - we’re here to help. To support you through this difficult time, we’ve introduced a range of options that could help you stay on top of your mortgage payments.

Mortgage Charter help and support

These options are available as part of the Mortgage Charter. They won’t impact your credit score.

Making interest only payments or extending your mortgage term will mean paying more interest overall. You should continue with your current monthly payments if you can manage them comfortably.

Please read through all the information provided about each option before applying for any of them.

Should I make interest only payments or extend my mortgage term?

You can temporarily make interest only payments for a maximum of six months, to give you some time to get back on track with your budget. With a term extension, you could make reduced payments for longer. Both options mean you’ll pay back more overall, but a term extension could mean you’ll be paying your mortgage later on in life.

If you extend your mortgage term past your planned retirement age, we’ll need to ask you some questions about your income. You can choose to go back to your original term within the first 6 months without an affordability check.

Things to think about expandable section

Can I consider all three options?

This will depend on your individual circumstances. Not every option might be suitable for you, and each option will have a different impact on your mortgage, so make sure you understand how they work.

Which option should I select first?

Again, this will depend on your individual circumstances. Before choosing any option, it’s important to think about the impact it will have on your mortgage by selecting it first. For example, if you’re on a variable interest rate mortgage, or your current fixed or tracker deal is coming to an end, you might want to think about switching to a new deal first. Any term extension or interest only payments made after that will be based on your new mortgage deal.

If I take interest only fixed payments, can I still switch to a new mortgage deal and extend my term?

Yes. Your interest only payments will be fixed for six months. If you choose to switch to a new mortgage deal or extend your term within these six months, your new deal will start as planned, although your payments won’t change until after your interest only payments have ended.

Any 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.

Can I extend my mortgage term while making interest only payments?

Yes, although you might prefer to wait until the end of the interest only period, so you can figure things out properly once you’ve returned to full monthly payments on your new mortgage balance.

Illustrative examples expandable section

Mortgage details:

Remaining balance: £200,000
Remaining term: 25 years
Interest rate: 5%
Current monthly payment: £1169.18

	Interest only payments (for six months)	Extend term by one year (minimum term extension)	Extend term by five years
Interest only payments (for six months) New monthly payment	Extend term by one year (minimum term extension) £833.33 (for six months £1181.21 (after six months)	Extend term by five years £1146.69	£1073.64
Interest only payments (for six months) Impact on monthly payment	Extend term by one year (minimum term extension) £335.85 reduction (for six months) £12.03 increase (after six months)	Extend term by five years £22.49 reduction	£95.34 reduction
Interest only payments (for six months) New mortgage term	Extend term by one year (minimum term extension) 25 years (remains the same)	Extend term by five years 26 years	30 years
Interest only payments (for six months) New total mortgage cost	Extend term by one year (minimum term extension) £352,274	Extend term by five years £357,766	£386,512
Interest only payments (for six months) Increase in total mortgage cost	Extend term by one year (minimum term extension) £1520.50	Extend term by five years £7012	£35,758

Interest only payments (for six months)

New monthly payment

£833.33 (for six months)
£1181.21 (after six months)

Impact on monthly payment

£335.85 reduction (for six months)
£12.03 increase (after six months)

New mortgage term

25 years (remains the same)

New total mortgage cost

£352,274

Increase in total mortgage cost

£1520.50

Extend term by one year (minimum term extension)

New monthly payment

£1146.69

Impact on monthly payment

£22.49 reduction

New mortgage term

26 years

New total mortgage cost

£357,766

Increase in total mortgage cost

£7012

Extend term by five years

New monthly payment

£1073.64

Impact on monthly payment

£95.34 reduction

New mortgage term

30 years

New total mortgage cost

£386,512

Increase in total mortgage cost

£35,758

These examples are for illustrative purposes only and assume there are no other changes to the mortgage over the remaining term.

Cancelling an interest only payment arrangement

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.

Cancelling a term extension in the first six months

You’ll be able to cancel your term extension in the first six months without us needing to do an affordability check by completing our cancellation form.

You could lose your home if you don’t keep up your mortgage repayments