Mortgage Options

With a capital repayment plan, your monthly payment covers the interest charged on your mortgage and it also reduces the outstanding balance each month in line with the term selected. With this repayment plan, you can ensure your mortgage is fully paid off at the end of the mortgage period.

What you get with the repayment option:

• Interest and capital repaid

    Your monthly payment covers the interest and also reduces the total balance outstanding

• Secure

    Providing all payments are made, the mortgage will be repaid in full at the end of the agreed mortgage term

• Choose your repayment term

    Up to a maximum of 35 years.

Capital repayment is a repayment option on all of our mortgage products - fixed rate and tracker mortgages.

With an interest only mortgage, your monthly payment covers only the interest on your loan, enabling you to invest to pay off your mortgage at the end of the mortgage term or freeing up cash to spend elsewhere.

By repaying only the interest on your mortgage, your monthly payments are lower than with an equivalent capital repayment mortgage.

Note: You are responsible for making your own arrangements to repay your mortgage at the end of the mortgage term. This could be through a savings or investment plan. Your property may be repossessed if you do not have sufficient funds to repay the capital balance outstanding at the end of the term. 

What you get with the Interest only option:

• Interest only

    The monthly payment covers just the interest and the original capital amount borrowed remains outstanding throughout the term of the loan

• Lower monthly payments

    Because you are not repaying the capital your monthly payments will be lower than with a capital repayment mortgage

In order to qualify for our Interest Only Mortgages:

• Sole applicants must have a minimum income of £75,000 per annum excluding bonus, commission, overtime and rental income.
• For joint applications, at least one applicant must have an individual income of £75,000 per annum excluding bonus, commission, overtime and rental income.
• For a Buy-to-Let Interest only mortgage, you must meet our Buy-to-Let criteria

Choose your mortgage loan term

Up to a maximum of 25 years

Lower borrowing limit

Up to a maximum of 75% of the purchase price or the valuation of your property (whichever is lower)

With a fixed rate mortgage, the interest rate and monthly payments remain the same for the fixed rate period, which is usually either 2, 3 or 5 years. When the fixed rate period ends, your mortgage will revert to our standard variable rate which can either go up or down from time to time. Your monthly payments will change with each movement in our standard variable rate.

Pros:

• Good for budgeting as your monthly payments will stay the same for the fixed rate period
• Peace of mind if you think interest rates will go up during the fixed rate period

Cons:

• You won't benefit from lower payments if interest rates fall below your fixed rate during the fixed rate period
  
• Early Repayment Charges will apply if you want to switch deal, make lump sum repayments or repay your mortgage in full before the fixed rate period ends

With these mortgages, the interest rate you pay is variable and is an agreed percentage above the Bank of England's Base rate. As the Base Rate rises and falls, your interest rate will track these changes, and this will effect your monthly payments accordingly.

Pros:

• You'll pay less each month if base rate goes down
  
• If base rate rises, you can choose to switch to another rate (although a booking fee may apply)
• You can make unlimited overpayments without incurring an Early Repayment Charge

Cons:

• You'll pay more each month if base rate goes up