Repayment options – adding to my mortgage

If you’ve taken a mortgage payment break, before this ends we’ll let you know all the options available to you to make up the agreed missed payments. You could add the payments and interest to your mortgage balance, depending on your circumstances.

Adding the missed payments to your mortgage

We want to make ending your mortgage break as easy as possible. One of your options could be to add your agreed missed payments and interest to your mortgage and we can do this automatically for you.

We'll let you know in the letter we send you if this option is available to you and what your new monthly payments will be.

We’ll add the missed payments and interest to your mortgage balance and you’ll spread the cost across the rest of the time left on your mortgage, your payments will be slightly higher than what they were before.
We’ll do this for you automatically, unless you tell us you want to choose another option.
If you do want to choose a different repayment option you’ll need to let us know your choice by the cut-off date in your letter or we’ll apply this auto option for you.

Interest only mortgages: If any part of your mortgage is on an interest only basis the capital balance you’ll need to repay at the end of your mortgage term will increase with this option. You’ll need to review your repayment strategy to make sure you have enough funds to repay the balance at the end of your mortgage.

How will this impact my monthly payments?

Your payments will be higher than they were before your payment break and you’ll pay more interest overall during your remaining mortgage term.

Here’s an example of how this would work:

Jane has a repayment mortgage of £160,000 on an interest rate of 4.00% and has 24 years and 1 month left on her mortgage. Her monthly payment before she took a payment break was £863.32 each month.

After a 3 month payment break, Jane added the agreed missed payments and interest to her remaining mortgage term. Her new monthly mortgage payments are now £877.48 an increase of £14.16 each month.

Overall Jane will pay £1459.80 in additional interest over the remaining time left on her mortgage.

What happens next with my payment break?

We'll write to you before the end of your payment break with all of the information you'll need. In that letter we'll let you know:

What options are available to you including a personalised example of how each option will impact your mortgage payments
We’ll let you know if adding missed payments to your mortgage term is an option available to you
If this option is available to you we’ll automatically apply this option unless you choose another before the date in your letter
All other payment options available to you
If you want to choose another option, we’ll let you know the date you need to let us know by
When your mortgage payments will restart. For example, if you took a three month payment break over April, May and June, then your next payment will be start in July
Once you’ve chosen an option we’ll write to let you know we’ve updated your account and re-confirm your new monthly payments.

How to contact us

The best way to contact us at this time is by email or request a call back. Please check out our frequently asked questions above before contacting us, we’re updating these regularly with the questions our customers are asking us.

If you're a commercial mortgage customer you can find out more information here.