Mortgage base rate UK
We recommend checking your repayment plans are on track at least yearly – and more often if possible. This means if your plans aren’t as expected, you can act as early as possible to make sure you can still pay off your Interest Only mortgage at the end of the term.
Remember to check:
- the amount you will owe at the end of your mortgage – find this on your mortgage statement
- the amount your repayment plans are likely to produce and whether this will cover the amount you’ll owe.
If you want to speak to someone
Call us on 0800 028 1624 . Lines are open 8am to 7pm Monday to Friday and 9am to 2pm Saturday
There are a number of options open to you. Your options could include:
1. Change your mortgage from an interest only to a repayment mortgage with, or without, changing your mortgage term.
2. Make overpayments on your interest only mortgage to reduce the capital outstanding, with the aim of paying it back by the end of the mortgage term. You can overpay up to 20% each calendar year (January to December) on any interest only fixed rate loan amount without paying an early repayment charge. This offer will be withdrawn on 31 December 2016 and will change to 10% of your loan amount. If you‘ve got an Alliance & Leicester mortgage, you can overpay up to 20% on any interest only fixed rate loan amount in January of each year without paying an early repayment charge. This offer will be withdrawn on 31 January 2017 and will change to 10% of your loan amount.
The majority of our tracker rates and Standard Variable Rate mortgages allow you to make unlimited overpayments without paying an early repayment charge. Check your original Key Facts Illustration for more details.
3. Consider selling your property or any other assets you hold, to pay back your interest only mortgage and consider downsizing to a lower value property.
Talk to us
We can help you understand the options available to you. Call us on 0800 085 0980. Lines are open 9am to 5pm Monday to Friday.
Talk to an Independent Financial Adviser (IFA)
They may charge a fee but can help you work out the best plan for you. Find an Independent Financial Adviser in your area
When you talk to either us or an independent financial adviser, it can help to have a good idea of:
- your income
- current and future expenses
- the value of your home
- how much you owe on your mortgage
- your mortgage term
- the projected value of your existing repayment plans
- the age you intend to retire.
Why have you written to me?
The Financial Conduct Authority (FCA), one of the UK Financial Services Regulators published a review of Interest Only mortgages in 2013 which reminded borrowers that it remains their responsibility to have a suitable plan to repay their Interest Only mortgage at the end of the term. Santander, along with other lenders, is contacting customers to make sure they have suitable plans to repay the capital when their Interest Only mortgage ends.
Do I need to do anything because of this letter?
If you have received a letter there is the option to either complete a short form and return it to us in the pre-paid envelope, call us on the free phone number on the letter or you can use our online form to update us on your repayment plans.
How do I access the online form?
To use the form you will need to tell us your date of birth, the reference on the letter you received from us and your postcode. You will then be able to complete and submit the form. Please note you will only be able to complete the online form once.