Repayment or interest only

All of our mortgages are available as:

• repayment mortgages, where the money you pay each month covers both capital and interest repayments
• interest-only mortgages, where your monthly payments to Nationwide only cover the interest that's being charged on your mortgage
• a combination of repayment and interest-only mortgages

If you want the certainty of repaying your mortgage at the end of the mortgage term then the repayment mortgage is the only suitable product for you. If you are willing to take a risk your mortgage will not be repaid then an interest-only mortgage may be appropriate. If you decide that you are prepared to accept this risk we will only give you an interest-only mortgage if:

• you have a suitable repayment vehicle, such as an ISA or endowment policy
• you are prepared to sell your house at the end of the mortgage term to repay the debt. If this is the case you will need to have at least £150,000 equity in your existing property and we will only lend you 66% of the property value
• you intend to sell a second property to repay the loan. The equity in the second property must be at least 120% of the new mortgage amount it is intended to cover

Please note that in none of these circumstances is there a guarantee the mortgage will be repaid at the end of the term. If there are insufficient funds from these repayment methods you will have to find an alternative means of repaying the shortfall

Next steps: Flexible features or