Options if you cannot pay off your interest only mortgage
Who this guide is for
This guide can help if you cannot pay back what you owe and:
you are coming to the end of your interest only mortgage term
your interest only mortgage term has ended already
Your mortgage term is how long you have to pay back what you owe. For example, 25 years.
What is an interest only mortgage
With an interest only mortgage you have to make mortgage payments each month.
These payments are for the interest your lender charges on the money you have borrowed to buy your home.
They do not pay off the capital which is the money you have borrowed.
If you have an interest only mortgage
You need to make sure that you have enough money to pay off the mortgage when the mortgage term ends.
Check that your plans for repaying your mortgage will give you enough money for this.
Money Helper has advice on repaying an interest only mortgage.
The breathing space scheme could help if you're behind with debts like mortgage, credit card or loan payments.
It can freeze payment demands and legal action while you get free debt advice.
It could also stop or delay eviction for mortgage repossession.
Last updated: 6 March 2023
