A discounted rate offers a set discount off either a Product Variable Rate (PVR) or a Standard Variable Rate (SVR) for a specific, initial term. Once the discounted rate period ends, you will then usually revert to one of the variable rates detailed below. The minimum interest rate that can be charged is 0.001%.
Tracker rate
A tracker rate will track at a set percentage above or below another rate (often the Bank of England base rate) for a specified term. Your Terms and Conditions will state details of which rate your mortgage is tracking against.
Fixed rate
If a fixed interest rate applies to your mortgage, it will not change until you get to the end of the agreed fixed rate term. You will then usually revert to one of the variable rates detailed below. We will write to you to inform you of your new interest rate and payment at least …
Why do I need to have a repayment plan to pay off my interest only mortgage?
If you don’t, you might not be able to pay off the amount you borrowed by the end of the mortgage term. If you have a repayment plan, you need to check it regularly to make sure it’s on track. We recommend that you do this at least once a year. If you don’t have …
What is an interest only mortgage?
The monthly payments you make only cover the interest. This means you need to pay off the amount you borrowed by the end of the mortgage term.
What happens if I can’t pay back my interest only mortgage?
We’ll try to get in touch with you to understand your circumstances. We’ll assess your financial position and look at ways to help you pay back the remaining balance. If this isn’t possible, you may need to sell your property. If we can’t get in touch with you, we may have no choice but to …
Can Direct Debits be paid from accounts outside the UK?
No. Direct Debits can only be set up from a UK Bank or Building Society account.
Does the Direct Debit need to be in my name?
We’re unable to set up a Direct Debit in a name that doesn’t appear on the mortgage. At least one mortgage holder name needs to appear on the bank account, this includes joint accounts.