Category: Ways we can help
If you have a repayment mortgage and either need a reduced payment for a period of time or want to repay arrears at a faster pace, a temporary change in the type of mortgage you have – for example by temporarily converting a repayment mortgage to interest only – may be appropriate.
Important information about changing your repayment type:
- A temporary change of repayment type is normally agreed to cover a temporary change in your circumstances, like being out of work or undergoing medical treatment. It isn’t a long-term solution.
- When you switch back to your original payment method, your payments will increase. You need to be confident that you can meet these higher payments.
- We won’t report the temporary change to credit reference agencies.
- Arrears are reported to credit reference agencies and may be affected by a temporary conversion. For example, if before the temporary conversion your monthly payment is £250 and you have arrears outstanding of £250, we would report to credit reference agencies that your account is one month in arrears. If your monthly payment reduced to £50 as a result of the temporary conversion and the arrears remained at £250, we would report to credit reference agencies that your account is five months in arrears.