Interest Only Mortgages

2 Year Fixed Mortgage – 60% LTV

2 Year Fixed Offer

  • Initial Rate – 1.05% APR
  • 60% Loan To Value (LTV)
  • 2 Year Fixed
  • £350 CASHBACK
Overall cost for comparison 4.00% APRC

Call NatWest FREE on 0800 158 2934

Interest Only Residential Mortgages

Type
Fixed
Initial Term
2 Years
Initial Interest Rate
0.99%
Reverts to 3.54%
Max LTV
60%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.10% APRC. This is the cost of the mortgage over the full term.

Type
Fixed
Initial Term
2 Years
Initial Interest Rate
1.05%
Reverts to 3.59%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call NatWest FREE on 0800 158 2934
“Market Leading 2 Year Fixed Rate”
£350 CASHBACK

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
1.07%
Reverts to 3.59%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call NatWest 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
1.09%
Reverts to 3.54%
Max LTV
60%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 2.40% APRC. This is the cost of the mortgage over the full term.

Type
Fixed
Initial Term
5 Years
Initial Interest Rate
1.13%
Reverts to 3.59%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call NatWest FREE on 0800 158 2934
£350 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
1.13%
Reverts to 3.59%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call RBS FREE on 0800 096 7447
“Market Leading 5 Year Fixed Rate”
£350 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
1.14%
Reverts to 3.54%
Max LTV
75%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.10% APRC. This is the cost of the mortgage over the full term.

Type
Fixed
Initial Term
2 Years
Initial Interest Rate
1.18%
Reverts to 3.59%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call NatWest FREE on 0800 158 2934
£350 CASHBACK

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
1.21%
Reverts to 3.59%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call RBS FREE on 0800 096 7447
£250 CASHBACK

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
1.29%
Reverts to 3.54%
Max LTV
75%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 2.50% APRC. This is the cost of the mortgage over the full term.

Type
Fixed Remortgage
Initial Term
5 Years
Initial Interest Rate
1.30%
Reverts to 3.59%
Max LTV
75%
Product Fee
Yes
Interest Only

More info

Call RBS 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 Remortgage
Initial Term
5 Years
Initial Interest Rate
1.41%
Reverts to 3.59%
Max LTV
60%
Product Fee
Yes
Interest Only

More info

Call NatWest FREE on 0800 158 2934
£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.

Type
Fixed
Initial Term
2 Years
Initial Interest Rate
1.59%
Reverts to 3.54%
Max LTV
80%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.20% APRC. This is the cost of the mortgage over the full term.

Type
Fixed
Initial Term
5 Years
Initial Interest Rate
1.89%
Reverts to 3.54%
Max LTV
80%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 2.80% APRC. This is the cost of the mortgage over the full term.

Type
Fixed
Initial Term
5 Years
Initial Interest Rate
2.29%
Reverts to 3.54%
Max LTV
85%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.00% APRC. This is the cost of the mortgage over the full term.

Interest Only Offset Mortgages

Type
Offset Fixed
Initial Term
2 Years
Initial Interest Rate
3.19%
Reverts to 3.54%
Max LTV
60%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

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

Type
Offset Fixed
Initial Term
2 Years
Initial Interest Rate
3.19%
Reverts to 3.54%
Max LTV
75%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

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

Type
Offset Tracker
Initial Term
Base Rate Tracker Offset
Initial Interest Rate
3.29%
Max LTV
60%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.40% APRC. This is the cost of the mortgage over the full term.

Type
Offset Tracker
Initial Term
Base Rate Tracker Offset
Initial Interest Rate
3.29%
Max LTV
75%
Product Fee
Yes

More info

Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.40% APRC. This is the cost of the mortgage over the full term.

Type
Offset Flexible
Initial Term
Life of Mortgage
Initial Interest Rate
4.25%
Variable
Max LTV
80%
Product Fee
Yes

More info

Call NatWest FREE on 0800 158 2934

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

Type
Offset Flexible
Initial Term
Life of Mortgage
Initial Interest Rate
4.25%
Variable
Max LTV
80%
Product Fee
Yes

More info

Call RBS FREE on 0800 096 7447

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

Interest Only Buy to Let Mortgages

Type
Fixed Buy-to-Let
Initial Term
2 Years
Initial Rate
1.60%
Reverts to 4.09%
Max LTV
60%
Product Fee
Yes

More info

Call NatWest FREE on 0800 056 8572

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 Buy-to-Let
Initial Term
2 Years
Initial Rate
1.60%
Reverts to 4.09%
Max LTV
60%
Product Fee
Yes

More info

Call RBS FREE on 0800 096 7962

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 Buy-to-Let Remortgage
Initial Term
2 Years
Initial Interest Rate
1.60%
Reverts to 4.09%
Max LTV
60%
Product Fee
Yes

More info

Call NatWest FREE on 0800 056 8572

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

Type
Fixed Buy-to-Let
Initial Term
2 Years
Initial Rate
1.85%
Reverts to 4.09%
Max LTV
75%
Product Fee
Yes

More info

Call RBS FREE on 0800 096 7962

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

Type
Fixed Buy-to-Let
Initial Term
5 Years
Initial Rate
2.24%
Reverts to 4.09%
Max LTV
75%
Product Fee
Yes

More info

Call NatWest FREE on 0800 056 8572

Early redemption charges may apply. Overall Cost for Comparison 4.10% 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.

Independent advice on interest only mortgages

If you are looking for independent advice on your mortgage options and you are considering interest only then please complete our mortgage enquiry form and we will call you back.

Independent Mortgage Advice

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.

 

Virgin Mortgage – 2 Year 75% LTV

Virgin Money Mortgage – 2 Year Fixed Deal

  • Initial Rate – 2.08%
  • 75% Loan To Value (LTV)
  • 2 Year Fixed
  • £300 CASHBACK

Overall cost for comparison 3.90% APRC

Call Virgin Money FREE on 0330 057 1595

Mortgages

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