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Mortgage & Equity Release - Call Us 0117 403 4474

0.92% APR 

  • Fixed for 28 months
  • 60% LTV - Interest only option
  • Overall cost for comparison 3.20%

Representative Example: 

Mortgage of £180,000 on property valued at £300,000 over term of 25 years.

Rate fixed for 28 months after which reverts to the RBS variable rate of 3.59%.

Call RBS on 0800 068 7706

1.03% APR

  • Fixed for 64 Months
  • 60% LTV - Interest Only
  • Overall cost for comparison 2.60%

Representative Example: 

Mortgage of £180,000 on property valued at £300,000 over term of 25 years.

Rate fixed for 64 months after which reverts to NatWest variable rate of 3.59%.

Call NatWest FREE on 0800 068 8567

3.64% APR 

  • Fixed for 26 months
  • 95% LTV - £500 CASHBACK Offer!
  • Overall cost for comparison 3.30%

Representative Example: 

Mortgage of £100,000 on property valued at £200,000. Term of 25 years.

Rate fixed for 26 months then reverts to variable rate of 4.34%.

Call Virgin Money FREE on 0330 057 1528

Can I Get An Interest Only Mortgage

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

See below for latest market leading interest only mortgage 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: 0.92%
Rate type: Fixed 27 months
Monthly cost: £671.87 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.2% APRC
Barclays Mortgage logo 0.92% Fixed 27 months 3.2% APRC 60% £999 £671.87 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 0.92%
Rate type: Fixed 27 months
Monthly cost: £671.87 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest logo 0.92% Fixed 27 months 3.2% APRC 60% £995 £250 cashback £671.87 per month get quotes Call direct0800 068 8567
Initial rate: 0.92%
Rate type: Fixed 27 months
Monthly cost: £671.87 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest Int Sols logo 0.92% Fixed 27 months 3.2% APRC 60% £995 £250 cashback £671.87 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.92%
Rate type: Fixed 27 months
Monthly cost: £671.87 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
Royal Bank of Scotland logo 0.92% Fixed 27 months 3.2% APRC 60% £995 £250 cashback £671.87 per month get quotes Call direct0800 068 7706
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £673.49 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.2% APRC
HSBC logo 0.94% Fixed 27 months 3.2% APRC 60% £999 £673.49 per month get quotes Call us0117 403 4474 More details
Initial rate: 0.94%
Rate type: Fixed 36 months
Monthly cost: £673.49 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.0% APRC
Nationwide BS logo 0.94% Fixed 36 months 3.0% APRC 60% £999 £673.49 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 0.94%
Rate type: Fixed 24 months
Monthly cost: £673.49 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.2% APRC
Nationwide BS logo 0.94% Fixed 24 months 3.2% APRC 60% £999 £673.49 per month get quotes Call us0117 403 4474 More details Broker Only Deal
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £673.49 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest logo 0.94% Fixed 27 months 3.2% APRC 60% £995 £673.49 per month get quotes Call direct0800 068 8567
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £673.49 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest Int Sols logo 0.94% Fixed 27 months 3.2% APRC 60% £995 £200 cashback £673.49 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £673.49 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
Royal Bank of Scotland logo 0.94% Fixed 27 months 3.2% APRC 60% £995 £673.49 per month get quotes Call direct0800 068 7706
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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

Can I get an interest only mortgage?

If you had asked this question a couple of years ago the answer would probably have been that it would be a struggle. After the financial crisis the lenders effectively shut their doors and stopped lending, especially products that offered low interest, no fees, a high loan to value and interest only. Now it seems that they are becoming available again from more and more lenders.

What is an interest only mortgage?

An interest only mortgage is an arrangement whereby you borrow the amount you need to buy the property and then rather than making large capital repayments and interest each month you just pay interest making the payments more manageable. You never make a dent in the capital you just pay the interest for the life of the mortgage. When you get to the end of the term you still owe the capital so you will need to have a plan in place to repay this.

An example of the difference in repayment and interest loans would be if you were to borrow £150,000 over 25 years at 5% interest. The interest only payments would be £625 per month and the repayment and interest would be £877. A difference of £252 per month but it does mean the loan would be repaid at the end of the term if interest and capital payments were made.

How does it work in the long term?

There is a risk. For a long time people relied on an increase in property values to repay the capital at the end. If we were to see another financial crisis and the borrower had overstretched themselves then you may have to make other arrangements. Many used to take out endowment policies to run alongside the mortgage. They matured when the mortgage term ended and paid off the capital. These became less popular when they failed to achieve the amount needed to clear the debt.

Now lenders are agreeing to 75% loan to value deals as long as the capital from the sale of the property will be used to pay the outstanding loan at the end of the term.

Will this work for me?

Everyone is different and your circumstances may change. If you think you will struggle to be able to may repayments as well as interest then you could take an interest only for the short term and with many lenders you can switch to paying back the capital later on. Some lenders will offer you the means to pay some of the capital back so although you may not completely clear the mortgage you will have cleared some capital by the end of the term.

What are the criteria?

You can get interest only mortgages but under tough new regulations bought in by the FCA’s Mortgage Market Review these loans can only be provided if there is a clear strategy for repaying the capital at the end of the term.

The process for taking out a mortgage is much tougher than it used to be and you will face questions about your spending, income and affordability. With this now added to the process of applying for a mortgage you will benefit from the advice of a professional more than ever. Add this to the huge range of products available and you could really save yourself money, time and stress by talking to us.

 New regulatory requirements brought in under the Financial Conduct Authority's Mortgage Market Review stipulate that lenders can provide interest-only mortgages only if there is a credible strategy for repaying the capital.

Borrowers will now face tough questions on their income and spending to assess their affordability and if they can cope in the event of interest rates rising.

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