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Mortgage Charter support measures

If you would like to see what taking an term extension or switching to an interest only mortgage for 6 months would mean for your monthly payment, use our free online calculator to check.

Online calculator

Term extension

You can apply to extend the term of your mortgage so that you repay the loan amount over a longer period of time and as a result you pay less each month.

You have the option to revert back to your original mortgage term within the first 6 months or alternatively keep to the revised term.

There is no need for an affordability assessment as long as the term is not extended beyond your anticipated date of retirement or age 70, whichever is sooner.

Your credit score won’t be impacted by this change.

Apply now

If the repayment method of your mortgage is currently on either a repayment (capital and interest) or part and part basis you can apply to temporarily switch your mortgage to an interest only repayment method for 6 months. As you won’t be paying off the capital on your mortgage during this period, you’ll see a reduction in your monthly payment but your mortgage balance will remain the same.

After the 6 month period your mortgage will revert to the repayment type you were originally on but your monthly payments will increase.

There is no need for an affordability assessment and your credit score won’t be impacted by this change.

Apply here

Interest only

If the repayment method of your mortgage is currently on either a repayment (capital and interest) or part and part basis you can apply to temporarily switch your mortgage to an interest only repayment method for 6 months. As you won’t be paying off the capital on your mortgage during this period, you’ll see a reduction in your monthly payment but your mortgage balance will remain the same.

After the 6 month period your mortgage will revert to the repayment type you were originally on but your monthly payments will increase.

There is no need for an affordability assessment and your credit score won’t be impacted by this change.

Apply now

Representative example

If you currently have a repayment mortgage (the balance will be paid off at the end of the term) you can apply to extend your mortgage term.

If you opt to extend your mortgage term:

  • Your monthly repayments will reduce
  • You should note that the total amount you pay back to us will be higher
  • You can opt to switch back to the original term within 6 months

We won’t carry out an affordability assessment and your credit score won’t be impacted by these changes.

Please note that your mortgage will come with a follow on rate that may impact these examples. In the large number of cases it will be Bank of England Base rate plus 3.14%. However most customers will opt to review their rate at maturity.

The following examples are based on a mortgage of £200,000 over with a remaining 20 year term on an interest rate of 6%.

Representative example

Extending the term of your mortgage by 10 years
from 1st August 2023

Current payments
Term = 10 years left

Payments with an extended term
New Term = 20 years

Extra this will cost you over the lifetime of the mortgage

£1,432.86

£1,199.10

£87,789.47
IO example

Extending the term of your mortgage by 10 years
from 1st August 2023

Current payments
(capital repayment)

Payments for 6 months
 (temporarily at interest only)

Payments after temporary interest-only period

Extra this will cost you over the lifetime of the mortgage

£1,432.86

£1,000

£1454.95

£1,870.39