Alternative Repayment Options - Mortgages

Depending on your circumstances, one of our alternative repayment arrangements may be appropriate for you. This could prevent your mortgage from falling into arrears, or further into arrears.

Each of the repayment arrangements has its own qualifying criteria, with each Income and Expenditure assessed individually.

After we have assessed your Income and Expenditure and supporting documents, we will contact you to discuss the outcome. We will try to find an appropriate resolution for you, wherever possible.

	Key features	How it works
Interest Only	You will only pay the interest owed on your loan during this period and not the capital amount owed.	Your mortgage repayments are reduced for an agreed period. Your mortgage repayments for the remaining term are recalculated. This means that your repayments will then increase for the remaining period.
Fixed Repayment	You will pay a series of agreed repayments which could be interest and some capital or repayments which could be less than the interest amount due.	At the end of the agreed period your mortgage repayments for the remaining term are recalculated. This means that your repayments will then increase for the remaining period.
Repayment Break	Defer the payment of all or part of your mortgage repayment for an agreed period of time to ease the immediate financial pressure on you.	At the end of the agreed period your mortgage repayments for the remaining term are recalculated. This means that your repayments will then increase for the remaining period.
Capitalisation of the Arrears and Interest	Restructure your repayments by spreading the amount of any missed repayments and interest over the remaining term of your mortgage.	Your mortgage repayments are recalculated based on your paying off the mortgage amount plus the amount missed repayments that have been added to it. This means that your repayments will increase.
Extension of Mortgage Term	Extend the term of your mortgage which could reduce your monthly repayments.	Spreading the amount owed over a longer period of time to reduce repayments. You will pay more interest over the longer term.
Voluntary Sale of your Property	This involves you selling your property on the open market and the proceeds used to clear your mortgage debt	If you sell the property for less than the amount you owe on your mortgage, you will still have to pay us the amount that remains outstanding
Negative Equity Trade Down	We may agree to give you a smaller mortgage for you to downsize to a less expensive home.	Any outstanding ‘negative equity’ is added to the new loan and secured on the new property. Full capital and interest payments will be made on the new loan.