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Return to Mortgages HomePayment Method

Although there are many different types of mortgage schemes and deals available, there are still just two basic ways of repaying your mortgage:

Repayment

Each month, your monthly repayments pay off a portion of the interest on your mortgage and some of the capital borrowed. This is the only method that ensures you pay back your mortgage totally by the end of the mortgage term, so long as you keep up with your mortgage repayments.

Interest Only

The payments you make each month cover only the interest on the loan.  You will still owe the amount borrowed (‘the capital’) at the end of the mortgage term.  It is your responsibility to make sure you have suitable plans in place to repay the capital.

For residential mortgages, we allow a maximum 75% of the purchase price or valuation (whichever is the lower) on interest only.  If your loan exceeds 75% loan to value then the balance must be on a repayment basis.

You must have a suitable plan in place to repay the amount you borrow on an interest only basis.  We accept interest only applications in conjunction with the following repayment vehicles:

We recommend that you consult an Independent Financial Adviser (IFA) to discuss which method is right for you.

 

You will be required to provide us with documentary evidence from the product provider of your chosen repayment plan (which must have been in place for a minimum of 12 months). It is your responsibility to make sure that the repayment method you choose will enable you to repay the whole of the loan and you must obtain financial advice if you do not know how to do this. We will only check that your policy or plan is in place and we do not guarantee the suitability or performance of any policy or plan that you take out.

 

You will still have to pay the full amount owed under the mortgage even if the money you receive under the policy or plan is less than the amount owed - if you are unable to do so your home may be repossessed.  You should regularly check the performance of your repayment vehicle.

 

Part Repayment & Part Interest Only

A portion of the loan is on a repayment basis and a portion is on interest only. Our interest only rules apply to the interest only element of the loan (see above).

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE


Please read our Personal Banking Guide - 116KB PDF Document.


© Bank of Ireland 2012
 

Bank of Ireland Group provides mortgages in the UK through "Bank of Ireland Mortgages" and "Bank of Ireland UK".

Bank of Ireland Mortgages is a trading name of the UK branch of the Governor and Company of the Bank of Ireland (with branch number BR000459) which is authorised by the Central Bank of Ireland and authorised and subject to limited regulation by the Financial Services Authority. Details about the extent of our authorisation and regulation by the Financial Services Authority are available from us on request. The registered office of the UK branch of the Governor and Company of the Bank of Ireland is 1 Temple Back East, Temple Quay, Bristol, BS1 6DX.

Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is authorised and regulated by the Financial Services Authority. Registered in England & Wales (No. 7022885), Bow Bells House, 1 Bread Street, London EC4M 9BE.

If you are in doubt as to your mortgage provider or have any queries relating to our UK mortgage products or services please contact our UK administration centre at: Bank of Ireland (UK Mortgages), PO Box 27, 1 Temple Quay, Bristol, BS99 7AX. Phone: (0117) 979 2222. Fax (0117) 929 3878. mortgage.services@boipluk.co.uk