Interest Only Mortgages

Interest Only Mortgages

Compare UK Interest Only Mortgage Deals

Virgin Money Mortgage Offer

7 Year Fixed Interest Only Deal

  • Initial Rate – 2.37% APR
  • 60% Loan To Value (LTV)
  • 7 Year Fixed
  • £300 Cashback

Overall cost for comparison 3.60% APRC

Call Virgin Money FREE on 0330 057 1528

Post Office Buy To Let Mortgage Offers
Post Office Mortgage
Type
Fixed
Initial Term
2 Years
Initial Interest Rate
1.50%
Reverts to 4.24%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 158 2934

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

Type
Tracker
Initial Term
2 Years
Initial Interest Rate
1.75%
Reverts to 4.99%
Max LTV
70%
Product Fee
Yes
Interest Only

More info

Call FREE on 0330 057 1528

Early redemption charges may apply. Overall Cost for Comparison 4.40% APRC. This is the cost of the mortgage over the full term.

Type
Fixed
Initial Term
2 Years
Initial Interest Rate
1.76%
Reverts to 4.74%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call FREE on 0808 178 6813

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

Type
Fixed
Initial Term
2 Years
Initial Interest Rate
1.83%
Reverts to 4.24%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 158 2934

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

Type
Fixed
Initial Term
5 Years
Initial Interest Rate
1.95%
Reverts to 4.24%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 158 2934

£250 CASHBACK

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

Type
Fixed
Initial Term
5 Years
Initial Interest Rate
1.95%
Reverts to 4.24%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 096 7447

£250 CASHBACK

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

Type
Fixed
Initial Term
5 Years
Initial Interest Rate
1.99%
Reverts to 4.24%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 158 2934

£250 CASHBACK

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

Type
Fixed
Initial Term
2 Years
Initial Interest Rate
2.01%
Reverts to 4.74%
Max LTV
60%
Product Fee
No
Interest Only

More info

Call FREE on 0808 178 6813

£500 CASHBACK

Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.

Type
Fixed Remortgage
Initial Term
2 Years
Initial Interest Rate
2.09%
Reverts to 4.24%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 158 2934

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

Type
Fixed Remortgage
Initial Term
2 Years
Initial Interest Rate
2.09%
Reverts to 4.24%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 096 7447

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

Type
Fixed Remortgage
Initial Term
5 Years
Initial Interest Rate
2.73%
Reverts to 4.24%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 158 2934

Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.

Type
Fixed Remortgage
Initial Term
5 Years
Initial Interest Rate
2.73%
Reverts to 4.24%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call FREE on 0800 096 7447

Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.

Type
Fixed
Initial Term
3 Years
Initial Interest Rate
2.30%
Reverts to 4.74%
Max LTV
70%
Product Fee
No
Interest Only

More info

Call FREE on 0808 178 6813

£250 CASHBACK

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

Interest Only Mortgages

In the last 12 months there has been a significant improvement by lenders providing flexible interest only lending options.

An interest only mortgage will essentially allow you to only repay the interest that is owed each month on your mortgage.

Lenders will expect you to have a repayment strategy in place e.g. putting savings into an acceptable  savings vehicle, or sale of property in order that you can meet the future repayment of capital required on the mortgage redemption date.

An interest only mortgage will essentially allow you to only repay the interest that is owed each month on your mortgage. Lenders will expect you to have a repayment strategy in place. What is acceptable as a repayment strategy will differ from lender to lender.

Examples include:

  • Sale of the mortgaged property
  • An acceptable savings vehicle such an ISA or tax free cash from a pension plan
  • Sale of an investment property

Mortgage lenders who provide interest only options will have different rules on this.

Typically lenders will go up to 75% loan to value.

Some will operate on what is called a part and part basis e.g. 50% of the mortgage loan on an interest only basis and 25% on a capital repayment basis.

It will depend on your situation.

Lenders will want to be comfortable that you can afford to pay off the mortgage at the end of the loan term. So typically you will need to have at least 25% equity in your home. The new lender will also as with any mortgage review your income and previous borrowing record before making an offer.

With your current mortgage it is important to check to see if there are any early redemption charges if you move your mortgage to a new lender.

The good news is that in the last 12 months the options for people age 60+ for interest only mortgages has improved significantly with many lenders bringing out flexible products for older borrowers.

For example Post Office have brought out a retirement link mortgage which allows borrowers to take out a mortgage on an interest only basis up to age 80.

 

RBS Mortgage Offer

Interest Only Mortgage Deal

  • Initial Rate – 1.99%
  • 75% Loan To Value (LTV)
  • 5 Year Fixed

Overall cost for comparison 3.50% APRC

Call FREE on 0800 096 7447

Post Office Buy To Let Mortgage Offers
Post Office Mortgage

Other ways of raising finance from your home

Rather than remortgaging your home you may want to consider what is called a second charge mortgage.

Homeowner Loan

Free up money while leaving your current mortgage in place

A second charge mortgage (often referred to as a secured loan) can be used for all kinds of purposes including:

  • Home improvements
  • Business purposes
  • Buy to let property deposit
  • School fees
  • Wedding or new car

Borrow from £25,000 to £500,000 with flexibility to repay the loan at any time

Get a no obligation loan quote >>

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