Repayment options – extending the term of 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. One of your options is to extend the term of your mortgage, depending on your circumstances.

Extending your mortgage term

We want to make ending your mortgage break as easy as possible. One of your options could be to add the agreed missed payments and interest to your mortgage and extend the term of your mortgage, if this suits your circumstances.

You’ll pay more interest overall during your remaining mortgage term and it will take you longer to pay off your mortgage with this option
At the end of your first mortgage payment you’ll have the option to extend the life of your mortgage by 3 months.
If you take a further payment deferral (of up to 3 months) when your first payment break ends you’ll have the option to extend your mortgage by 6 months
If you do want to choose this repayment option you’ll need to let us know by the cut-off date in your letter or we’ll apply the auto option for you

Interest only mortgages: If any part of your mortgage is on an interest only basis this option may be suitable for you only if you need to extend your repayment strategy to pay off the increased capital balance at the end of your mortgage term. Extending the term will not affect your monthly repayments and will increase the overall amount of interest payable over the remaining term of your mortgage.

How will this impact my monthly payments?

Your payments will be similar to what they were before your payment break.

The agreed missed monthly payments and interest will be added to your mortgage balance.

Here's an example of how this would work:

Issac’s 3 month payment break.

Isaac took a 3 month payment break. He has a repayment mortgage of £160,000 on an interest rate of 4.00% and he has 24 years and 1 month left on his mortgage. His monthly payment before he took a payment break was £863.32 each month.

After a 3 month payment break, Isaac added his agreed missed payments and interest to his mortgage and extended the term by 3 months. His new monthly mortgage payments are now £872.03 an increase of £8.71 each month. Overall Isaac will pay £2517.19 in additional interest over the term of his mortgage and he now has 24 years and 4 months left on his 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 extending your mortgage term is an option available to you
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.