First Time Buyer Interest Only Mortgages

Get interest only mortgage deals

First Time Buyer 2 Year Fixed Rate - 5% Deposit »NatWest Mortgages

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4.05%Reverts to 3.75% after 2 years


Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term. Early redemption charges may apply.

Compare latest first time buyer interest only mortgages - use our mortgage tables below to see a selection of market leading mortgage deals:

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

2.51%

Reverts to 3.75%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term.
Fixed

2.58%

Reverts to 4.54%

3

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.00% APRC. This is the cost of the mortgage over the full term.
Fixed

2.86%

Reverts to 3.75%

2

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term.
Fixed

3.99%

Reverts to 3.75%

5

Years

90%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

4.08%

Reverts to 4.54%

2

Years

95%

NoMore Info >
£300 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.50% APRC. This is the cost of the mortgage over the full term.
Fixed

4.08%

Reverts to 4.54%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.50% APRC. This is the cost of the mortgage over the full term.
Fixed

4.34%

Reverts to 4.54%

3

Years

95%

NoMore Info >
£300 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.50% APRC. This is the cost of the mortgage over the full term.
Fixed

4.05%

Reverts to 3.75%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

4.05%

Reverts to 3.75%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

4.54%

Reverts to 4.54%

3

Years

95%

NoMore Info >
£300 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.50% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55

Reverts to 3.75%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55%

Reverts to 4.00%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

1.94%

Reverts to 3.69%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term.
Fixed

2.13%

Reverts to 4.54%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

2.51%

Reverts to 3.75%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term.
Fixed

2.58%

Reverts to 4.54%

3

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.00% APRC. This is the cost of the mortgage over the full term.
Fixed

2.86%

Reverts to 3.75%

2

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term.
Fixed

2.91%

Reverts to 3.75%

5

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.60% APRC. This is the cost of the mortgage over the full term.
Fixed

3.72%

Reverts to 3.75%

5

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Fixed

3.72%

Reverts to 3.75%

5

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


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

Compare Interest Only Mortgages for First Time Buyers

 

Finding an appropriate mortgage can often seem like a difficult and confusing task, especially for first time buyers. Interest only mortgages are quite different from repayment mortgages, and may be more suitable for some first time buyers in the right circumstances. In any case, it is important to conduct as much research as possible when comparing mortgage deals.

 

As is the case with any other type of mortgage agreement, customers will be expected to make monthly repayments over the course of an agreed period. However, the borrower will only be expected to repay the interest on their on loan initially, which can make their monthly payments considerably easier.

 

For first time buyers, an interest only mortgage may offer a number of benefits, the following are some examples:

 

  • First time buyers who have less money may find it easier to make their monthly repayments
  • They may have more money available to spend on furnishing or renovating the property
  • An interest only mortgage may be more flexible, allowing customers to under or overpay on their payments depending on the state of their finances
  • Borrowers may also find a higher degree of competition on the market when searching for a deal, giving them more freedom to choose a suitable deal

 

Although interest only mortgage may be highly useful for first time buyers, it should be remembered that they are not without their drawbacks.

 

Over a long term period once the interest has been completely rapid (over a 20 year period for example) interest only mortgage holders will generally pay significantly more than people with a repayment mortgage. Also, unlike a repayment mortgage, the borrower may not always be guaranteed to own the property completely, as they must have set aside enough money over a number of years using an investment vehicle.

 

If you are a first time buyer searching for a suitable interest only mortgage, feel free to look at our mortgage comparisons table for more information on the various mortgage deals that are available.

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

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker