Existing Interest Only Mortgages

Your home may be repossessed if you do not keep up repayments on your mortgage

Important Information for customers with Interest Only Mortgages

With an Interest Only Mortgage, repayments cover the interest element of your loan and not any of the outstanding loan (capital). The actual amount of capital borrowed must be repaid in full at the end of the agreed term of the mortgage.

It is therefore vital that there is a realistic repayment plan in place. The closer a mortgage is due to end the more important it is that you review your plan of repayment and take whatever action is necessary to address any potential shortfall. It is also recommended that you continue to review your repayment plan on a regular basis.

This review may include obtaining up to date values of any investments and savings plans you may have in connection with your mortgage and obtaining a current value of the property if a sale of the same is your proposed route to repayment.

For more information please visit the Money Helper at https://www.moneyhelper.org.uk/en/homes/buying-a-home/ways-of-repaying-an-interest-only-mortgage External link icon

FAQs

Whether we provide credit depends upon your circumstances, and you must be 18 or over. Lending criteria, terms and conditions apply. Your home is security for your mortgage. You may need to provide other security. An early repayment charge may apply. A Danske Bank personal current account will be required to service the mortgage. You can get details of fees, service charges, interest rates and terms and conditions that may apply to Danske Bank personal current accounts throughout this website and from all our branches in the UK.