Interest Only Mortgages

Interest Only Mortgage Deals

With an interest-only mortgage your repayments only cover the interest on the mortgage amount and do not repay any of the underlying loan capital. It is important that you have a realistic plan to pay back the loan, and review it regularly to ensure you're on track.

See below for our pick of leading current mortgage deals - depending on your circumstances and the loan to value you require some providers will consider an interest only mortgage repayment option, although in recent years the criteria has become more stringent. 

While there may be good reasons for operating a mortgage in this way, it is important that money is put aside to pay off the loan at the end of the term.

Using an investment vehicle to build up a capital sum may be one way of doing this e.g. through an ISA plan, but with all investments there is an associated risk that the sum provided on maturity may not meet the liability.

It is important to get mortgage advice in this area to ensure that an interest-only mortgage is right for your circumstances.