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Roger CooperReviewed by Roger Cooper, Full CeMAP Qualified Adviser · Last updated October 2026
Interest Only Mortgage Help

Stuck on an interest only mortgage? There is a way out.

Hundreds of thousands of UK homeowners took out interest only mortgages in the 1990s and 2000s — and many are now approaching retirement age with the full capital balance still outstanding and no clear plan to repay it. You are not alone, and there are more solutions than you might think.

Act before your term ends. The earlier you start dealing with this, the more options are available to you. Waiting until the final year can force a sale. If your interest only term ends within the next 5 years, contact us now.

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Why so many people are in this situation

From the 1980s through to the early 2010s, interest only mortgages were widely sold to borrowers who could not always afford a full repayment mortgage. The idea was that a separate savings vehicle — an endowment policy, an ISA, a pension — would grow over the mortgage term and pay off the capital at the end.

In many cases, those repayment vehicles underperformed, were cashed in early, or were never properly set up at all. Lenders also accepted "sale of property" as a repayment strategy — which works in theory, but leaves the homeowner with no home at the end of their mortgage term unless they can downsize and cover the balance.

The result is that a significant number of UK homeowners — many now in their 50s, 60s, and 70s — are approaching the end of their mortgage term with the full capital balance outstanding and no clear way to repay it. This is what the industry calls the interest only mortgage "time bomb".

The good news: lenders and regulators have recognised this problem, and there are now more solutions available than at any point in the past. An experienced mortgage broker can find options that your own lender may not even offer.

Your options — explained honestly

The right solution depends on your age, income, how much equity you have, and how long remains on your term. We assess all of these and recommend accordingly.

Switch to a repayment mortgage

If you still have time and sufficient income

Convert your interest only mortgage to a full repayment mortgage. Monthly payments will be higher, but you will be paying off the capital and own the property outright at the end of the term. We find the most competitive rate across 90+ lenders for your circumstances.

Part repayment, part interest only

If full repayment payments are too high

Many lenders allow a split mortgage — part of your balance on repayment, part interest only. You reduce the capital gradually, lowering the final lump sum needed without a dramatic jump in monthly payments.

Retirement interest-only mortgage (RIO)

If you're at or approaching retirement age

A retirement interest-only mortgage has no end date. You pay the interest each month (keeping the balance the same) and the capital is repaid from the sale of the property when you die or move into long-term care. Available to borrowers with pension or other retirement income.

Term extension

If you have enough equity and income to service the debt longer

Extending the mortgage term — sometimes significantly — can reduce monthly repayments on a switched repayment mortgage to a manageable level. Some lenders will lend well into retirement provided income evidence supports it.

Equity release (referred to specialists)

If you have significant equity and want no monthly payments

A lifetime mortgage can pay off the outstanding balance in full, with no monthly repayments required. The new loan plus rolled-up interest is repaid from the property on death or move to long-term care. We refer clients to fully qualified equity release specialists.

Downsizing

If selling is the right long-term move

Sometimes the right answer is to sell and buy something smaller, clearing the mortgage entirely and releasing cash. We can help structure a new mortgage on the smaller property if needed, or help plan the transition.

Not sure which option is right for you?

We assess your full situation — age, income, equity, term remaining — and give you a clear, honest recommendation. No obligation.

Get free adviceCall 0844 884 9748

Common questions

What happens when my interest only mortgage term ends?
At the end of an interest only mortgage, the full outstanding capital balance becomes due in one lump sum. If you cannot repay it — and your original repayment vehicle (ISA, endowment, sale) has not performed as expected or never existed — you face losing your home unless you can refinance, sell, or find another solution. If your term is ending in the next 1–5 years, now is the time to act.
My lender says I can't extend or switch — what can I do?
Your current lender's criteria are not the only option. Many specialist lenders have far more flexible affordability criteria for older borrowers, retirement income, and interest-only situations. A good broker knows which lenders are most likely to approve your specific circumstances. We have helped many clients who were turned down by their own bank find an alternative solution.
Can I remortgage if I'm already in my 60s or 70s?
Yes. More lenders than ever are extending their maximum age at end of term. Some mainstream lenders will lend to age 80 or 85, and specialist later life lenders have no upper age limit at all. The key is income — pension income, rental income, and investment income all count. We know which lenders are most generous for older borrowers.
What if my property has gone up in value significantly?
An increase in your property's value works in your favour. It reduces your loan-to-value (LTV), which opens up more lenders and better rates, and gives you more options including equity release. It does not reduce the capital you owe, but it does increase the amount you would receive from a sale. We can use an updated valuation to unlock better products.
My endowment policy didn't pay out enough — what are my options?
Thousands of homeowners were sold endowment policies in the 1980s and 90s that were projected to repay interest only mortgages — and many have a shortfall. This is one of the most common interest only mortgage problems we deal with. Depending on the size of the shortfall, the options include a partial conversion to repayment, a RIO mortgage, or in some cases a top-up payment plan. We assess the full picture and recommend the most appropriate route.
How soon should I start dealing with this?
As early as possible — ideally 2–5 years before your term ends. The more time you have, the more options are available. Waiting until the final year dramatically narrows what you can do and can result in forced sale. If you are within 5 years of your term end and do not have a confirmed repayment plan, contact us now.

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Areas we cover:BexleyBromleyGreenwichCroydonBarking & DagenhamHaveringLewishamNewhamKentSurreyEssexBerkshireView all areas →

Don't wait until it's too late

The sooner you address an interest only shortfall, the more solutions are available. A free, no-obligation conversation with one of our advisers could give you a clear path forward.

Get free advice todayCall 0844 884 9748

Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.

Mortgage International is a trading style of Mortgage Int Ltd, an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority.

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