Your interest only mortgage

You can check your hub to see if you have an interest only mortgage. You'll also find this on your Annual Mortgage Statement or mortgage Offer.

This section explains how these mortgages work and some things you might want to think about.

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Having an interest only mortgage means you only pay the interest charged on the amount you borrowed from us. You still owe the full balance, or capital, plus any fees, when your mortgage comes to an end.

You need to have a plan in place to pay this back. Read our how to repay your interest only mortgage page for details.

Everyone named on the mortgage is responsible for making sure the full amount can be paid at the end.

You can switch to a repayment mortgage at any time as long as you meet our lending policy.

How can I pay off my mortgage?

You need a clear plan, known as a repayment strategy, to pay back the full amount when your mortgage ends. You could:

  • Sell your property, and use the money to pay off your mortgage. You keep the extra money if the house sells for more than you owe
  • Use an investment plan, such as an endowment, ISA or pension. These may grow over time. You use the money you build up to pay off your mortgage.

It’s important to check how well your plan is doing. If it doesn’t grow enough to cover what you owe, you must still pay the full amount.

What if I don’t have a plan in place?

You should get in touch with someone who can help if you don’t have a plan in place. They can also check how your repayment strategy is doing. You could:

  • Visit moneyhelper.org.uk or call them on 0800 138 7777 for for free money guidance
  • Speak to an independent financial adviser – you may have to pay for this.

Call us on 0800 169 9712* to tell us about how you’re going to pay off your mortgage, or if your plan has changed.

What should I do if my repayment strategy doesn’t cover what I owe?

It’s important to act now if your repayment strategy isn’t growing as expected. You could:


* Visit our accessibility support page to call using a British Sign Language (BSL) interpreter. To call using text Relay, dial 18001 then the number you want to call using a textphone or the Relay UK app. All calls are recorded for training and monitoring purposes. Lines are open 9am – 5pm, Monday to Friday. We’re closed on Bank Holidays. 03 calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages.

What is a repayment mortgage?

A repayment mortgage is where part of your monthly payment pays the interest, and the rest pays back the capital. As long the payments are made on time, the mortgage is paid off at the end of the term.

Changing your mortgage from interest only to repayment will increase your monthly payments. You must still be able to afford these payments.

Can I change the length of my my mortgage?

You can choose to extend the length of your mortgage, known as your mortgage term, to help lower your monthly payment. However, this means you’ll pay more interest overall.

If you want to explore this:


*  Visit our accessibility support page to call using a British Sign Language (BSL) interpreter. To call using text Relay, dial 18001 then the number you want to call using a textphone or the Relay UK app. All calls are recorded for training and monitoring purposes. Lines are open 9am – 5pm, Monday to Friday. We’re closed on Bank Holidays. 03 calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages.

Overpaying means you pay more than your normal monthly payment. You can overpay regularly or make one‑off lump sum payments. This helps you reduce the amount you owe when your mortgage ends.

Use our overpayment calculator to see how much difference this could make.

Make sure you do not overpay more than you can afford.

If you’re unsure: