Support for mortgage customers

Mortgage cost of living support

How we could help

The UK Government has announced support for borrowers who are struggling with their mortgage payments. We're committed to helping our customers through this difficult time and we're pleased to be a part of this Mortgage Charter to help ease the pressure for our customers.

Check if you're eligible

You're eligible for the mortgage charter support if you're a residential mortgage customer.

You will not be eligible for the mortgage charter options if your current mortgage agreement is Buy to Let, interest-only or you are not up-to-date with your mortgage payments. 

However, we could still offer other support as part of the mortgage charter and beyond on this page. 


What are your mortgage charter options?

It's important you consider whether this type of support is best for your circumstances. You won't need an affordability check and it won't affect your credit score. You can only choose one of the below options and you won’t be able to apply again. You can find out more about all your options under the charter further down the page.

If you're eligible to switch to a new deal you may want to think about when you would like this option to start. You may switch to a new deal with a different rate, and time your chosen support option to start when your new rate starts. Or, you may choose to start your cost-of-living support before you switch to a new deal.


Change your mortgage payments to interest-only for 6 months

An interest-only mortgage allows you to make monthly payments that just cover the interest on the money you have borrowed. When your 6 months interest-only period ends, your monthly repayments will increase because you'll resume paying both Capital and Interest on your mortgage, and you'll pay more interest over the term of your mortgage.

Extend your mortgage term with the option to change your mind in the first 6 months

You can extend your mortgage term to lower your monthly repayments. If you extend your term, the total amount of interest you pay back over the new term will increase. You can change your mind in the first 6 months, if you revert back to your original term within 6 months, your monthly payments will also increase.

Representative examples

Below are two examples to help you understand the short and long term impacts to your mortgage if you choose either the interest-only option or to extend your term. To see what this means for you, go to the cost of living support section when you log into Manage your Mortgage.

Your actual payments will depend on the amount of your mortgage, the remaining term and the rate applicable during the time of your fixed or variable rate and the rate when that ends. The longer your mortgage term the more interest you will pay over the life of the mortgage.

6 months interest-only example

As an example only, take Alex, a customer with an £179,000 current mortgage balance and a remaining term of 23 years on a typical rate of 5.14%.

During the 6 months on the interest-only option, Alex’s monthly payments would reduce by £377.

After the 6 months ends, the Alex would pay an additional £13 each month during their remaining term.

This also means Alex would pay an additional £2,367 in interest over the entire life of the mortgage.

Term extension example

As a result of Alex choosing to extend the mortgage term, they will pay more over the term of their mortgage.

If Alex chooses to extend their term from 23 years remaining to 35 years with a 2-year fixed rate of 5.14%, Alex’s monthly payments would reduce by £166 per month.

This also means Alex would pay an additional £121,029 in interest over the entire life of the mortgage.

Additional support for our mortgage customers

Here are some other support options that you could take on to help you manage your monthly payments. This may also be right for you if you're not eligible for the interest-only option or term extension.  

What happens when the 6 months are up for the interest-only option? 

If you choose the interest-only option, when the 6 months period ends, your mortgage will change from interest-only back to the original repayment method. This means that you’ll resume paying both the capital and interest on your mortgage balance.

We’ll keep you updated, so there’s nothing you need to do. You’ll be given at least 14 days notice of your new monthly mortgage payment amount before it’s due.

Here are a couple of things to bear in mind when this change happens

  • If any part of your mortgage was interest-only before the change, it will remain as interest-only.
  • If you have a regular overpayment in place, this won’t change.
  • We didn’t carry out a full assessment of your personal circumstances when providing the cost of living support or when reversing it.
  • Your credit rating hasn’t been affected by this support.

Further help to support with the rising cost of living in the UK

We understand this may be a worrying time and we’re here to help if you’re struggling to meet your mortgage payments after reviewing your options. If you're in this situation here are some options that might help you plan financially.

I know I'm going to miss a mortgage payment soon

It's really important for you to understand what options are available to you. You can find out more by looking at our frequently asked questions.

I'm worried I might miss a mortgage payment in the future

We've got lots of tools and tips to help you take control of your finances. Our Managing your money guide is a great place to start.

Frequently asked questions

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