How it works

If you have an interest only mortgage – or part of it is interest only – you can change to capital repayment. That means you'll start to pay off the capital you've borrowed as well as the interest.

If you change your whole mortgage to capital repayment, you will have paid off the full amount by the time you reach the end of your mortgage term.

You can’t apply to change your repayment type if:

  • You want to apply to change from capital repayment to interest only.
  • The property is currently being let.
  • Your mortgage was regulated by the Consumer Credit Act at the time it was taken out.
  • There's a guarantor on the mortgage.
  • You or anyone else on the mortgage have been declared bankrupt and have not been discharged.

How do I apply?

First, you need to decide whether you'd like advice from us on which repayment method is best for you.

Applying with advice

Call us on 03457 30 20 11 or visit us in branch.

One of our Mortgage Consultants will talk you through your options and send out an application form, which you’ll need to return to us by post.

Applying to change your repayment method is a big decision. You may feel you need some advice – our mortgage experts can guide you based on your particular circumstances.

Applying without advice

You can now apply to change your repayment method online.

If you’re planning on changing your mortgage term as well, you can apply to do this at the same time.

Apply without advice if you feel confident if changing your repayment method is right for you. If you then decide you'd like our advice, you can continue your application through an advised route.

Once we’ve received your completed application, we’ll change your repayment method within 10 working days. It doesn’t cost you a penny but you may incur charges if you make any other changes to your mortgage – see our tariff of charges.

Frequently asked questions

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 main residence).

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.

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

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