Interest Only Fixed Rate Mortgage

Interest Only Fixed Rate Mortgage Quotes


An interest-only fixed rate mortgage could potentially offer you a more affordable way to acquire a home than with a repayment style mortgage deal, because you will only be repaying the interest occurred and not the capital part of the loan itself.

 

If you are looking for the best fixed rate mortgages, see the table below to find some of the latest deals. You can call the lenders direct to get interest only mortgage quotes.

 

An interest only fixed rate mortgage would typically work in the following way:

  • Each month you make payments to cover the interest of your mortgage loan
  • The level of interest you would pay each month is set at a fixed rate for a certain amount of time (the fixed rate offer period)
  • At the same time as making monthly interest only payments, you would be expected to be paying money into a long term savings plan on a regular basis
  • At the end of your mortgage’s term, you would be expected to pay off the entire mortgage loan with the money from your savings plan.


There are several different banks and building societies that may be able to offer you an interest only fixed rate mortgage deal. To find the most competitive mortgage deal available to you, take the time to compare a number of different interest only fixed rate mortgage deals. 

Fixed Rate Mortgage Deal Selection - Call Direct
Initial RateProviderTermTypeAPR*LTV 
2.99%
2 YearsFixed Rate4.10%60%More Info >
£999 product fee.
Call 0800 1582934 to speak to a NatWest mortgage specialist.
2.99%
2 YearsFixed Rate4.10%60%More Info >
£999 product fee.
Call 0800 068 7624 to speak to an RBS mortgage specialist.
3.49%
2 YearsFixed Rate 4.50%80%More Info >
£995 Product fee.
Call 0808 168 45 88 to speak to a Post Office morgage specialist.
3.79%
2 YearsFixed Rate 4.50%85%More Info >
£995 Product fee.
Call 0808 168 45 88 to speak to a Post Office morgage specialist.
4.79%
2 YearsFixed Rate NewBuy Scheme4.30%95%More Info >
New purchase only. £499 product fee.
Call 0800 1582934 to speak to a Natwest mortgage specialist.
*APR = Overall Cost for Comparison

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

The above mortgage products are a selection of deals 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 

Mortgage Deal Selection - Call Lender Direct
Initial RateProviderTermTypeAPR*LTV 
2.69%
2 YearsTracker4.00%60%More Info >
£999 product fee.
Call 0800 1582934 to speak to a NatWest mortgage specialist.
2.69%
2 YearsTracker4.00%60%More Info >
£999 product fee.
Call 0800 068 7624
to speak to an RBS mortgage specialist.
3.09%
2 yearsTracker4.40%75%More Info >
£995 arrangement fee.
Call 0808 168 45 88 to speak to a Post Office mortgage specialist.
3.49%
2 YearsFixed Rate 4.50%80%More Info >
£995 Product fee.
Call 0808 168 45 88 to speak to a Post Office morgage specialist.
3.79%
2 YearsFixed Rate 4.50%85%More Info >
£995 Product fee.
Call 0808 168 45 88 to speak to a Post Office morgage specialist.
*APR = Overall Cost for Comparison

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

The above mortgage products are a selection of deals 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 

You might like to refer to our mortgage comparison tables, which contain details of a number of different mortgage deals - if you can't see what you're looking for, call a lender direct to see if they can offer a mortgage that suits your requirements.


An interest only fixed rate mortgage could carry the following benefits:

 

  • As you are only required to pay interest payments, an interest only fixed rate mortgage could be initially cheaper
  • The fixed interest rate could provide you with a sense of security, as it is not subject to change with the Bank of England base interest rate; this could also make it easier for you to set budgets


However, you may wish to consider the potential drawbacks:

 

  • If the base interest rate dropped, your rate would still be fixed at the same amount
  • There is a risk that your savings may not be able to cover your mortgage loan at the end of the term


There are some competitive mortgage deals available in our easy to use comparison tables.