Frequently asked questions

Changing your repayment method - FAQs

No, there is no fee payable for changing repayment method and there is no fee if you request to change your term and repayment method at the same time (there's a £25 fee if you're only changing your term). Please check our Tariff of Charges for full details of our fees.

We’ll ask for proof of your income and your latest bank statement as part of your application. If we need anything else following your request we’ll let you know.

The following documents are accepted as proof of income:

  • Employed - we need to see your most recent payslips.  We'll also need to see your most recent P60 if you've received any bonuses that you want to be considered.
  • Self-employed - you'll need to provide HMRC SA302 forms for the last two years.  This is a brief summary of your income that has been reported to HMRC.
  • Unemployed - we'll accept a letter from HMRC or the Department for Work and Pensions (DWP)
  • On Maternity leave - let us have a letter from your employer that states when you're returning to work.

A Capital Repayment mortgage (also known as capital and interest or repayment) is the most common repayment method. Your monthly mortgage payment is made up of part of the amount borrowed plus interest every month. This means your mortgage will be repaid in full by the end of the term providing all payments are paid in full and on time.

An interest only mortgage means your monthly mortgage payment is only made up of the interest on the amount borrowed. At the end of your mortgage term you will need to pay back the amount you borrowed via a mortgage repayment plan (e.g. endowment policy, ISA, sale of property).

A part and part mortgage is a combination of capital repayment and interest only. Part of your mortgage is on capital repayment and will be paid off at the end of your mortgage term. The other part is made up of interest only and you’ll need to ensure you have a repayment strategy in place to repay the amount borrowed at the end of your mortgage term.

No, you can’t increase the interest only element of your mortgage. If your entire mortgage is on interest only you can convert to capital repayment or you can reduce the amount you have on interest only (part and part).

No. If your entire mortgage is on a capital repayment basis you cannot change the repayment method.

If you have a part and part mortgage you can’t increase the interest only amount, but you can request to reduce the interest only amount by converting that part to a capital repayment basis.

It'll take up to 10 working days for the change to take place from the date of your interview or from the date we receive the completed pack.

Call us on 0800 464 30 30 to discuss your options, or see our dealing with difficulties page.