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Mortgage & Equity Release - Call Us 0117 403 4474

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0.99% APR

  • Fixed for 26 months
  • Overall cost for comparison 4.30%

Representative Example:

Mortgage of £100,000 on property valued at £200,000 over term of 25 years. Fixed rate for 26 months after then reverts to the lender's variable rate of 4.74%.

Call us on 0117 403 4222

1.49% APR

  • Fixed for 62 months
  • Overall cost for comparison 3.70% APR

Representative Example:

Mortgage of £100,000 on property valued at £200,000 over term of 25 years. Fixed rate for 62 months after then reverts to the Lender's variable rate of 4.74%.

Call us on 0117 403 4222

Buy to Let Interest Only Mortgages

UK buy to let mortgage rates are at all time lows!

See below for latest market leading interest only buy to let deals or use our independent buy to let mortgage advice service to compare the market.

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparisonMax LTVProduct feeMonthly cost Enquire
Initial rate: 1.59%
Rate type: 1.59% Discounted Variable (collared at 1.59%) for 2 years (4.05% disc)
Monthly cost: £238.50 per month
Max LTV: 75%
Product fee: £995
Overall cost for comparison: 5.3% APRC
Furness BS logo 1.59% 1.59% Discounted Variable (collared at 1.59%) for 2 years (4.05% disc) 5.3% APRC 75% £995 £250 cashback £238.50 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.64%
Rate type: 1.64% Variable to 31/07/2024
Monthly cost: £246.00 per month
Max LTV: 65%
Product fee: £1,995
Overall cost for comparison: 4.5% APRC
The Mortgage Works logo 1.64% 1.64% Variable to 31/07/2024 4.5% APRC 65% £1,995 £246.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.64%
Rate type: 1.64% Variable to 31/07/2024
Monthly cost: £246.00 per month
Max LTV: 65%
Product fee: £1,995
Overall cost for comparison: 4.5% APRC
The Mortgage Works logo 1.64% 1.64% Variable to 31/07/2024 4.5% APRC 65% £1,995 £246.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.70%
Rate type: 1.70% Discounted Variable (collared at 1.70%) to 30/09/2024 (2.95% disc)
Monthly cost: £255.00 per month
Max LTV: 60%
Product fee: £0
Overall cost for comparison: 4.3% APRC
Principality BS logo 1.70% 1.70% Discounted Variable (collared at 1.70%) to 30/09/2024 (2.95% disc) 4.3% APRC 60% £0 £255.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.74%
Rate type: 1.74% Variable to 31/07/2024
Monthly cost: £261.00 per month
Max LTV: 75%
Product fee: £1,995
Overall cost for comparison: 4.9% APRC
The Mortgage Works logo 1.74% 1.74% Variable to 31/07/2024 4.9% APRC 75% £1,995 £261.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.74%
Rate type: 1.74% Variable to 31/07/2024
Monthly cost: £261.00 per month
Max LTV: 70%
Product fee: £1,995
Overall cost for comparison: 4.9% APRC
The Mortgage Works logo 1.74% 1.74% Variable to 31/07/2024 4.9% APRC 70% £1,995 £261.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.74%
Rate type: 1.74% Variable to 31/07/2024
Monthly cost: £261.00 per month
Max LTV: 65%
Product fee: £1,995
Overall cost for comparison: 4.5% APRC
The Mortgage Works logo 1.74% 1.74% Variable to 31/07/2024 4.5% APRC 65% £1,995 £400 cashback £261.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.74%
Rate type: 1.74% Variable to 31/07/2024
Monthly cost: £261.00 per month
Max LTV: 65%
Product fee: £1,995
Overall cost for comparison: 4.5% APRC
The Mortgage Works logo 1.74% 1.74% Variable to 31/07/2024 4.5% APRC 65% £1,995 £400 cashback £261.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.74%
Rate type: 1.74% Variable to 31/07/2024
Monthly cost: £261.00 per month
Max LTV: 65%
Product fee: £1,995
Overall cost for comparison: 4.5% APRC
The Mortgage Works logo 1.74% 1.74% Variable to 31/07/2024 4.5% APRC 65% £1,995 £261.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 1.80%
Rate type: 1.80% Discounted Variable (collared at 1.80%) to 30/09/2024 (2.85% disc)
Monthly cost: £270.00 per month
Max LTV: 70%
Product fee: £0
Overall cost for comparison: 4.3% APRC
Principality BS logo 1.80% 1.80% Discounted Variable (collared at 1.80%) to 30/09/2024 (2.85% disc) 4.3% APRC 70% £0 £270.00 per month get quotes Call us0117 403 4474 More details Broker Only Deal
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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 A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Buy to Let Interest Only Mortgages

Our Buy to Let Interest Only Mortgage Service

Why choose us?

Fair Mortgages can provide you with a first class service if you are looking for buy to let mortgage advice. 

Special features of what we offer include:

  • Whole of market broker - we deal with most UK buy to let lenders
  • Rates - Access to leading buy to let market rates
  • Exclusives - Access to exclusive buy to let mortgage deals not available on the high street
  • Our BTL expertise - Expert help whether you are a first time investor or experienced full time landlord
  • Credit issues? - We have lenders who will take into account previous defaults and missed payments 
  • Experienced BTL investor? - Have a complex buy to let or have a portfolio of 5+ properties? - speak to us

To investigate your buy to let mortgage options, call our specialist team or fill in our call back form. 

With an interest only buy to let mortgage deal, you only pay off the interest payments to the mortgage lender on a monthly basis. By doing this the monthly cost of borrowing is greatly reduced, as you are only making repayments on your interest owed, not on the mortgage loan itself.

However, if you are considering an interest only mortgage for a rental property, it is essential to have a repayment strategy in place to ensure that you can pay off the mortgage capital when the term of the buy to let mortgage ends.

Interest only buy to let mortgages are popular among landlords, especially since the 2017 changes to the tax rules.  From 2017, landlords can no longer deduct their entire expenses derived from their buy to let properties when calculating their profits.  Securing an interest only mortgage may be a way of counter acting the effect of the 2017 tax rules.

Benefits of an interest only buy to let mortgage

There are several reasons why you might consider an interest only buy to let mortgage, some of which include:

  • Lower repayments - The prospect of lower monthly payments, especially if you are unsure how much rent you will be charging, could be an appealing option and could make a buy to let mortgage more affordable in the short term.
  • Potential extra cash - If your repayment vehicle does really well over the term of the buy to let mortgage, you could find that you can afford to pay off the capital with some extra cash left over.

Drawbacks of an interest only buy to let mortgage

While the monthly repayments you make on an interest only buy to let mortgage are likely to be lower than with a repayment mortgage, there are some potential disadvantages to be aware of:

  • Lack of security – unlike a repayment buy to let mortgage, you have no guarantee that you will be able to pay off the mortgage balance at the end of the term
  • The need for a bigger deposit – many lenders require a proportionally larger deposit for interest only mortgages

To compare top mortgage rates and find the best interest only mortgage deals for you, use the mortgage above calculator to search over 5,000 deals based on your personal circumstances.

Mortgage Calculator

To compare top mortgage rates and find the best interest only mortgage deals for you, use the mortgage calculator above to search over 5,000 deals based on your personal circumstances.

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For Latest Interest Only Buy To Let Deals Call our Mortgage Team on 0117 403 4474 or Request a Callback

For a FREE initial conversation about your mortgage options complete our short enquiry form.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

Fair Mortgages Limited is an appointed representative of Fair Investment Company Ltd which is authorised and regulated by the Financial Conduct Authority.