Interest-only

For residential clients who like to make their money work harder.

All applicants must be aged 18 or over, and no more than 75 years old at the end of the mortgage term.

Your client can make overpayments to their mortgage of up to 10% of the capital each year. Their mortgage terms and conditions will give them all the details.

Your client can apply for a new repayment mortgage at any time, subject to our lending criteria. ERCs may apply – their mortgage terms and conditions will have all the information they need.

If your client is downsizing, they can keep their Interest‐only mortgage if they still have £200,000* equity in the new property and a maximum LTV of 75% (subject to product availability).

_{*There must be a minimum £300,000 equity for the ONS administrative regions of London and the South East, remaining at completion regardless of the applicant's chosen repayment plan. The acceptable Interest-only repayment plans must be paid in pounds sterling.}

All of our Interest‐only mortgages are portable so your client could apply to take it with them if they move to a new house. They’ll still need to have an acceptable repayment plan in place and we’ll need to see evidence of that.

If your client is experiencing financial difficulty or if they want to discuss any changes to their repayment plan, they should contact us as soon as possible on 0800 121 8899.

We don’t offer part repayment/part Interest‐only mortgages.

The total loan amount must not exceed 75% LTV (subject to product availability). This is either at the time of application or during the term of the mortgage.

Your client will be able to apply for an Interest‐only further advance as long as the LTV doesn’t exceed 75% (Subject to availability) for the whole mortgage and there is still at least £200,000* equity left in the property.

Further advances are subject to lending criteria and product availability at the time of application. They will also need to be on a new product, unless your client is on an Interest‐only Offset product.

_{*There must be a minimum £300,000 equity for the ONS administrative regions of London and the South East, remaining at completion regardless of the applicant's chosen repayment plan. The acceptable Interest-only repayment plans must be paid in pounds sterling.}

ERCs may apply – the mortgage offer will have details of any charges we’ll make. However, if at the end of the mortgage there is less than six months of the benefit term remaining, we’ll waive any ERCs.