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Interest Only

If you have an Interest Only mortgage, your monthly mortgage payments have been paying the interest charged on your mortgage – not reducing the loan itself. This means that when your mortgage ends, you’ll still need to repay the original amount borrowed (called ‘the capital’) plus any fees that may have been added over the term of the mortgage.

What does it mean for you?

It is your responsibility to pay back the capital that you borrowed at the end of the mortgage term, so you’ll need to have a repayment strategy in place to make sure you can do that.

If your repayment strategy isn’t on track to pay back all of the capital, act now. Talk to us today on 0345 300 8000*. The following options may be available to you:

Some restrictions apply depending on your nominated repayment strategy. To find out more about overpayments or switching your mortgage to a repayment basis, talk to us on 0345 300 8000*.

Keep us informed

It’s really important that as well as keeping track of your repayment strategy, you also keep us informed about it. If you’ve changed your strategy please let us know by completing an Interest Only Repayment Strategy form and sending it back to us. The more we know the more we can help. We’ll write to you at regular intervals to remind you that the capital on your mortgage needs to be repaid at the end of the term.

It’s really important if you have any concerns about repaying the capital balance at the end of your mortgage that you seek independent financial advice. This will help you understand all the options that could be available to you. Unfortunately Bank of Ireland Group is unable to offer you advice regarding your repayment strategy. The following organisations may be able to help:

The Money Advice Service

You may find the Money Advice Service helpful as they offer practical and impartial advice. You can also request free printed guides about repaying interest only mortgages, the options you may want to consider and how to obtain financial advice.
www.moneyadviceservice.org.uk
0300 500 5000

Citizens Advice Bureau

The Citizens Advice Bureau provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities.
www.citizensadvice.org.uk/index/getadvice  
03444 77 20 20 Wales
03444 111 444 England
03444 111 445 textRelay users

Age UK

Age UK provide free and confidential financial advice, particularly tailored for people in later life.
www.ageuk.org.uk
0800 169 65 65