Interest Only Mortgage Declaration Form
Where you have requested any part of your mortgage to be on an Interest Only basis, we will ask you for an update on how you intend to repay the mortgage you have with us.
The reason we are asking is that your monthly mortgage repayment only pays the interest accrued on the capital and is not reducing the amount borrowed, so it’s important to check your repayment strategy on a regular basis to ensure you are on track to repay your mortgage at the end of the term.
For example: If you have an Interest Only mortgage for £100,000 for 25 years where you only pay the interest on the loan each month, but, at the end of 25 years you’ll still owe at least £100,000.
Your current situation