Managing Your Interest Only Mortgage

Contact details & other help:

  • Mortgage servicing
         & Planning team:

       01633 844 371
         (9am-5pm Mon-Fri)
  • Money Advice Line:
         0300 500 5000

  • Money Advice Service
         leaflet

If you have a repayment plan in place

If you already have a plan, it's important to make sure that it's on track to cover your mortgage balance.

If you have an endowment plan or other investments, you should check the annual statements to see if there are any projected shortfalls. That way, if there are any problems or if your repayment plan is underperforming, you'll be able to act early to make up any difference.

If you don't have a plan in place or your repayment plan is facing a shortfall

You should have a repayment plan in place from when you take out your interest only mortgage. If you do not have a plan in place or if it is underperforming then please get in touch. The sooner you start preparing your repayment plan the better. The longer you wait, the fewer options you will have.

To discuss your options call your financial adviser, a Monmouthshire Building Society mortgage adviser or our help line 01633 844371.

Have you received a letter from the Monmouthshire?

We are sending letters to all of our interest only customers during the term of their mortgage to remind them how an interest only mortgage works and to highlight the importance of having a repayment plan in place.

If you received one of these letters and are concerned about your ability to repay the balance at the end of the mortgage term, please contact us using the details included in the letter.

Are you concerned about not being able to repay the full amount at the end of the mortgage term?

There are a number of options available– depending on your own personal circumstances – and these may include:

• Switch to a capital and interest (repayment) mortgage. This means you would start repaying the original loan you borrowed. You can switch some or all of your mortgage to a repayment mortgage, free of charge. You can check out the monthly repayments by using our online mortgage calculator.

• If you have savings, these could be used to reduce the overall amount outstanding. Please note that some of our products have restrictions on when and how much you can overpay without incurring an Early Repayment Charge (ERC). For further details on whether an ERC will be payable, please refer to your Offer Letter which forms part of the terms and conditions of your mortgage. Alternatively, you may contact us on 01633 844 340. Lines are open Monday - Friday 9am - 5pm.

• You may want to consult an independent financial adviser to see if you can invest in a suitable repayment plan to cover the balance by the end of the mortgage term. Remember that the value of any investment could rise or fall.

• If you're concerned about your ability to repay, the most important thing is to get in touch as soon as possible; this may either be with us, with an independent financial adviser or with one of the free, impartial services such as the Money Advice Service.

 
 


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