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Interest Only Mortgages

This calculator will help you to compare the costs of your mortgage on repayment or interest only methods and a combination of the two – Part and Part. This may help you to understand if your repayment strategy is sufficient to repay the remaining mortgage balance off at the end of the mortgage term.

Interest Only method

With an interest only mortgage, the monthly payments over the term of the mortgage cover only the interest charged on the amount borrowed. This means that the interest only part of your mortgage, together with any fees or charges debited to your account will be owed in full at the end of the term. It is entirely your responsibility to ensure that at the end of the term the remaining balance on your mortgage is repaid in full by your repayment strategy.

Repayment method

With a repayment mortgage the monthly payment you make covers both the interest charged and a portion of the original amount of money you borrowed. Providing you make all payments including any fees or charges when due, the loan will be repaid at the end of the term.

Part and Part method

This is a combination of both Repayment and Interest Only mortgage. For example a loan of £50,000 could be made up of £30,000 Repayment and £20,000 Interest Only, so there would be a remaining capital balance of £20,000 to repay at the end of your mortgage term.


If you have any concerns about repaying the balance at the end of the term a range of options may be open to you including:

  • Conversion of the mortgage to a repayment method.
  • Conversion to Part and Part method.
  • Extension of the term of the mortgage in conjunction with one of the above.
  • Repayment of lump sums to reduce the outstanding balance.
  • Regular overpayments to reduce the capital balance gradually.

In some instances any changes will be subject to the terms and conditions of your existing mortgage including any early repayment charges and our current lending policy. Please refer to your original mortgage offer, or contact us for details.

Please contact us on the telephone number opposite; to discuss the options we can advise you on.

In addition helpful information regarding interest only mortgages including budget calculators is available from the Money Advice Service website.

Interest Only / Repayment comparison calculator

Input your mortgage details below and press the calculate button. Then, move the slider to see how your payments would change if the Interest Only amount was increased or reduced.


Please note: so we can show a full % on repayment or interest only, the amount entered in 'interest only amount' may increase

% of loan on repayment

% of interest only

Your approximate monthly payment would be: £349

Remember that in addition to the approximate payment shown you will have to repay the remaining mortgage balance off at the end of the mortgage term for any part of the mortgage on an Interest Only method. You need to ensure that your repayment strategy for this part of the loan is adequate.

This information provides an approximate indication of costs. Full details are available by either calling or writing to us.

09 May 2021

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North Yorkshire Mortgages is authorised and regulated by the Financial Conduct Authority under registration number 303372
Registered office: The Bailey, Skipton, North Yorkshire, BD23 1DN Registered in England and Wales number 2238645
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