Interest only mortgage - your monthly payment to us only covers your mortgage interest - not any of the original loan. The loan is repaid at the end of its term from the proceeds of an investment which has been taken out separately to act as a ‘repayment vehicle’. Examples of investments that can be used as vehicles to repay a mortgage are endowment policies, pension policies, Cash ISAs or Stocks & Shares ISAs - previously known as PEPs.

It is important to remember that the value of any investment is subject to market performance, so can go down as well as up. This means there is no guarantee that the investment fund will be sufficient to repay the loan in full. It is your responsibility to ensure that adequate funds are available at the end of the mortgage term to repay the original loan. Failure to make suitable arrangements to repay your mortgage at the end of the term may result in the mortgage continuing for longer than originally anticipated and may adversely affect your future financial plans.