Relationship Managed Service
We combine modern banking with a long-standing tradition of exceptional service, offering you the flexibility and choices you need to manage your finances effectively.
Support for our Islands mortgage customers
Worried about rising living costs? We’re here to support you.
Worried about future payments or have already missed a payment?
We understand things can change. If you’re worried you may not be able to make a payment or you have already missed a payment, get in touch as soon as possible.
We’re here to help, and once we understand your situation better, we can talk through your options together.
Understanding your mortgage options
|
Fixed interest rate |
Variable interest rate |
Tracker rate |
|
|---|---|---|---|
|
Fixed interest rate What are the different types of rates? |
Variable interest rate Your interest rate stays the same for a set amount of time. At the end of the fixed rate period, we’ll change you to another rate. This is usually one of our variable rates. |
Tracker rate We set our lender variable rate and we can change it, but it will only go up if there:
|
Your interest rate is linked to the Bank of England base rate and changes if the base rate does. Your interest rate will be made up of the base rate plus or minus a percentage. |
|
Fixed interest rate Can my interest change? |
Variable interest rate No, not during the fixed rate period. |
Tracker rate Yes, your interest rate will go up or down if we change our lender variable rate. |
Yes, your interest rate will change if the base rate goes up or down. |
|
Fixed interest rate Can my monthly payments change? |
Variable interest rate We may update your monthly payment amount each year to make sure your payment is on track. For example, if you’ve made an overpayment. |
Tracker rate Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for. |
Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for. |
|
Fixed interest rate Will I be charged if I overpay or pay my mortgage off early |
Variable interest rate You may be charged if you repay all or part of your mortgage before the fixed rate period ends. We call this an Early Repayment Charge. |
Tracker rate You won't usually be charged if you repay all or part of your mortgage. |
You may be charged if you repay all or part of your mortgage in a certain amount of time after you take out a new tracker. We call this an Early Repayment Charge. |
We’ll let you know before making changes to your interest rate or monthly payments
Should I make interest only payments or extend my mortgage term?
If your budget's feeling the squeeze, you may be able to switch to interest-only payments for up to 6 months. This may give you time to get back on track.
Looking for something longer term? A mortgage term extension could help reduce your monthly payments over a longer period. Just keep in mind, both options mean you’ll pay more in total, and extending your term might mean carrying your mortgage further into the future.
If your new term goes beyond your expected retirement age, we’ll simply need to ask a few questions about your income, just to make sure everything still works for you.
Things to think about
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You can, but it depends on your situation. Some options might not be right for you, and each one could affect your mortgage in a different way. It’s a good idea to take a bit of time to understand how they work before choosing what’s best for you.
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That depends on your personal situation. Before making a choice, take a moment to consider how it might affect your mortgage.
For instance, if you're on a variable rate or your current fixed or tracker deal is ending soon, it might make sense to switch to a new deal first. That way, any changes, like extending your term or moving to interest-only payments will be based on your new mortgage terms, giving you a clearer picture and potentially better outcomes.
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Yes, if you decide to switch to a new mortgage deal or extend your term within the 6-month window, your new arrangement will start as planned. Complete with the updated rate and revised payments. Once your interest-only period ends, we’ll be in touch to confirm your new monthly payment amount.
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Yes, you can although it might be worth waiting until your interest-only period ends. That way, you’ll have a clearer picture once your full monthly repayments begin on your new mortgage balance.
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These examples are for illustrative purposes only and assume there are no other changes to the mortgage over the remaining term.
Remaining balance: £200,000
Remaining term: 25 years
Interest rate: 5%
Current monthly payment: £1,169.18
illustrative example of a mortgage costs Interest-only payments (for 6 months)
Extend term by 1 year (minimum term extension)
Extend term by 5 years
Interest-only payments (for 6 months)
New monthly payment
Extend term by 1 year (minimum term extension)
£833.33 (for 6 months)
£1,181.21 (after 6 months)
Extend term by 5 years
£1,146.69
£1,073.64
Interest-only payments (for 6 months)
Impact on monthly payment
Extend term by 1 year (minimum term extension)
£335.85 reduction (for 6 months)
£12.03 increase (after 6 months)
Extend term by 5 years
£22.49 reduction
£95.34 reduction
Interest-only payments (for 6 months)
New mortgage term
Extend term by 1 year (minimum term extension)
25 years (remains the same)
Extend term by 5 years
26 years
30 years
Interest-only payments (for 6 months)
New total mortgage cost
Extend term by 1 year (minimum term extension)
£352,274
Extend term by 5 years
£357,766
£386,512
Interest-only payments (for 6 months)
Increase in total mortgage cost
Extend term by 1 year (minimum term extension)
£1,520.50
Extend term by 5 years
£7,012
£35,758
Mortgage reviews
Meet one of our mortgage managers at your local Lloyds branch for a free 1-hour review.
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