Extend Break Charter For Free

Interest Only mortgages may be suitable for you if you: Are looking to borrow a maximum of 70% of the property value. Are looking for a maximum mortgage term of 25 years.

It is important to remember that a switch to interest-only is only temporary and that your monthly payments after six months will increase to make sure you can repay the full amount over the remaining term of your mortgage and the total interest you will pay will be higher.

It is possible to ask lender to extend your term to give you longer to save for the lump sum. This could give you the chance to switch at least some or all of the loan to a repayment mortgage, as by extending the term, your monthly repayments will be lower and more affordable.

Interest-only repayments are available for a set period over the life of the loan. Up to 5 years on an Owner-occupied loan and 10 years on an Investment loan. Principal and interest repayments following an interest-only period will be higher than if you'd been paying both the principal and interest from the start.

There is government help for those who are really struggling, called support for mortgage interest (SMI). This is available to people who are getting one of a list of other benefits including universal credit and income support.

To make monthly mortgage pay- ments more affordable, many lenders offer home loans that allow you to (1) pay only the interest on the loan during the first few years of the loan term or (2) make only a specified minimum payment that could be less than the monthly interest on the loan.

If you've used the calculator and you've decided that you want to extend the term of your mortgage, you can apply online. Alternatively call us on 0800 783 6533.

Under these measures, households who are struggling can switch to interest-only mortgage repayments for up to six months without it affecting their credit score.