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How much extra interest will I pay if I move to interest-only payments for 6 months?
How much extra interest will I pay if I move to interest-only payments for 6 months?

Switching to interest-only payments means you'll pay more in interest over the lifetime of your loan.

Written by Serena Patel
Updated over a week ago

Interest-only mortgage repayments mean your monthly payments only cover the interest that you owe to us on your principal loan balance. Your principal loan balance – the amount you initially borrowed from us – will remain payable and will not be reduced during this period.

That means you’ll pay more money in interest payments over the lifetime of your loan and your monthly payments will increase when you start to repay the principal balance.

The following illustration shows the impact of temporarily paying interest-only for 6 months on an outstanding balance of £200,000 paying interest of 6% with 25 years remaining on the mortgage.

The current repayments

The interest-only monthly repayments

The repayments after 6 interest-only repayments

Total increase to the monthly repayment

Your monthly repayments





The current mortgage

After 6 interest-only repayments

Additional interest payable

The total amount to pay back over your whole mortgage




The total amount of interest to pay




In this case, the APRC increases from 8.68% to 8.69% and the homeowner would pay an extra £2,522.12 in interest over the course of the loan.

Please contact us if you’d like to see a personalised illustration for your mortgage with us. We’re happy to discuss this option if you’re struggling to make your payments, but it may not be right for you.

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