Make interest only payments

Need a bit of time to get your budget back on track? Temporarily switch to interest only payments for six months, with no impact on your credit score.

How it works

You’ll make interest only payments towards your mortgage for six months, with no impact on your credit score.
Your monthly payment amount could go up or down - for example, if your interest rate changes.
You can cancel at any point, but you can only apply once.
Your monthly payments will increase at the end of the reduced payment period to collect the amount you haven’t paid.
You’ll pay back more on your mortgage overall if you make interest only payments for six months.
If you miss an interest only payment and don’t catch up, we might cancel the arrangement.
We’ll let you know what your new monthly payments will be before your interest only payments end.
You’ll still be able to offset, if you have an offset mortgage.

Important to know

Please ignore any letters or emails you receive about paying the interest only amount at the end of your mortgage during your reduced payment period.

Your monthly payments will automatically increase at the end of the reduced payment period to collect the interest only amount.

If you change your mind

If you decide to cancel the payment arrangement before the six months comes to an end, you can let us know by completing our cancellation form.

Please remember, you can only apply once.

Interest only examples expandable section

Here are some examples of how making interest only payments for six months can impact your monthly payments and the total amount payable.

Important: Your monthly payment and total mortgage cost will increase at the end of the reduced payment period to collect the amount you haven’t paid.

Current mortgage balance	£100,000	£300,000
Current mortgage balance Current Interest rate	£100,000 9.7%	£300,000 9.7%
Current mortgage balance Remaining term	£100,000 15 years	£300,000 30 years
Current mortgage balance Current monthly payment	£100,000 £1056.33	£300,000 £2566.45
Current mortgage balance Temporary interest only monthly payment	£100,000 £808.33	£300,000 £2425.00
Current mortgage balance Temporary reduction in monthly payment	£100,000 £247.99	£300,000 £141.45
Current mortgage balance New monthly payment (After 6 months of reduced payments)	£100,000 £1072.61	£300,000 £2573.89
Current mortgage balance Current total mortgage cost (Original amount borrowed plus interest)	£100,000 £190,138.80	£300,000 £923,923.66
Current mortgage balance New total mortgage cost (After 6 months of reduced payments)	£100,000 £191,484.62	£300,000 £925,705.33


Current mortgage balance	£100,000
Current mortgage balance	9.7%
Remaining term	15 years
Current monthly payment	£1056.33
Temporary interest only monthly payment	£808.33
Temporary reduction in monthly payment	£247.99
New monthly payment (After 6 months of reduced payments)	£1072.61
Current total mortgage cost (Original amount borrowed plus interest)	£190,138.80
New total mortgage cost (After 6 months of reduced payments)	£191,484.62


Current mortgage balance	£300,000
Current mortgage balance	9.7%
Remaining term	30 years
Current monthly payment	£2566.45
Temporary interest only monthly payment	£2425.00
Temporary reduction in monthly payment	£141.45
New monthly payment (After 6 months of reduced payments)	£2573.89
Current total mortgage cost (Original amount borrowed plus interest)	£923,923.66
New total mortgage cost (After 6 months of reduced payments)	£925,705.33

These examples are for illustrative purposes only and assume there are no other changes to the mortgage over the remaining term.

Before you apply, make sure you:

understand your monthly payment and total mortgage cost will increase at the end of the reduced payment period
are up to date with your payments
don’t already make interest only payments on all of your mortgage
aren’t currently taking a mortgage payment holiday
have consent from everyone named on your mortgage.

How do I apply?

Use our calculator to see you how much your new payments could be, and the impact making interest only payments for six months will have on your mortgage.

After you've used our interest only payment calculator, you can use our online form to apply.

Interest only payment calculator

How we process your personal information

Your personal information will be held by Intelligent Finance which is part of Lloyds Banking Group. More information on the Group can be found on the Lloyds Banking Group website.

It’s important you understand how the personal information you give us will be used. Therefore, we strongly advise you read our full privacy notice.

If you have any questions or require more information about how we use your personal information, please contact us.

You could lose your home if you don’t keep up your mortgage repayments