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Mortgage & Equity Release - Call Us 0117 403 4474

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4.83% 5 Year Fixed

  • 65% LTV
  • Overall cost for comparison 5.9% APRC
  • £500 Cashback

Representative Example: Mortgage of £100,000 on property valued at £200,000 over term of 25 years. Rate fixed for 60 months after which reverts to lender variable rate of 6.49%.

Book appointment with us »

4.89% 10 Year Fixed

  • 75% LTV
  • Overall cost for comparison 5.5% APRC
  • £1000 Cashback

Representative Example: Mortgage of £100,000 on property valued at £200,000 over term of 25 years. Rate fixed for 10 years after which reverts to lender variable rate of 6.24%.

Book appointment with us »

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparison Product fee Monthly cost Enquire
Initial rate: 4.14%
Rate type: 5 year fixed
Monthly cost: £621 per month
Product fee: £995
Overall cost for comparison: 7% APRC
NatWest logo 4.14% 5 year fixed 7% APRC £995 £621 per month get quotes
Initial rate: 4.19%
Rate type: 5 year fixed
Monthly cost: £628.5 per month
Product fee: £995
Overall cost for comparison: 7% APRC
NatWest logo 4.19% 5 year fixed 7% APRC £995 £628.5 per month get quotes
Initial rate: 4.34%
Rate type: 5 year fixed
Monthly cost: £651 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.34% 5 year fixed 7.1% APRC £995 £651 per month get quotes
Initial rate: 4.38%
Rate type: 5 year fixed
Monthly cost: £657 per month
Product fee: £1,495
Overall cost for comparison: 7.1% APRC
NatWest logo 4.38% 5 year fixed 7.1% APRC £1,495 £657 per month get quotes
Initial rate: 4.39%
Rate type: 5 year fixed
Monthly cost: £658.5 per month
Product fee: £0
Overall cost for comparison: 7% APRC
NatWest logo 4.39% 5 year fixed 7% APRC £0 £658.5 per month get quotes
Initial rate: 4.44%
Rate type: 5 year fixed
Monthly cost: £666 per month
Product fee: £1,495
Overall cost for comparison: 7.1% APRC
Yorkshire Building Society logo 4.44% 5 year fixed 7.1% APRC £1,495 £666 per month get quotes
Initial rate: 4.54%
Rate type: 5 year fixed
Monthly cost: £681 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
NatWest logo 4.54% 5 year fixed 7.1% APRC £0 £681 per month get quotes
Initial rate: 4.54%
Rate type: 5 year fixed
Monthly cost: £681 per month
Product fee: £495
Overall cost for comparison: 7.1% APRC
Yorkshire Building Society logo 4.54% 5 year fixed 7.1% APRC £495 £250 cashback £681 per month get quotes
Initial rate: 4.54%
Rate type: 2 year fixed
Monthly cost: £681 per month
Product fee: £995
Overall cost for comparison: 7.9% APRC
NatWest logo 4.54% 2 year fixed 7.9% APRC £995 £681 per month get quotes
Initial rate: 4.59%
Rate type: 5 year fixed
Monthly cost: £688.5 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
Yorkshire Building Society logo 4.59% 5 year fixed 7.1% APRC £0 £688.5 per month get quotes
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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

How Do I Get An Interest Only Mortgage

Interest Only Mortgage Rates

Our Mortgage Service

Looking for an interest only deal? Special features of what we offer include:

  • Whole of market service - we work with most UK lenders who offer interest only products

  • Access to leading market mortgage rates

  • Access to exclusive loan deals not available on high street

  • Fast turnaround - speak to us today if you need to move quickly

  • Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions

To investigate your interest only mortgage options call our mortgage team on 0117 403 4474 or fill in our call back form.

"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support. 

As your mortgage is such an important transaction, good advice is imperative.

How do I get an interest only mortgage

How Do I Get an Interest Only Mortgage

Interest only mortgages are a type of property finance, available for both residential and buy to let purchases. They differ from repayment mortgages in that rather than the monthly mortgage payments covering the interest which has accumulated on the balance as well as a portion of the original loan, it merely covers the interest; As such, at the end of the mortgage’s full term the borrower is expected to repay the original loan amount in full. 

This means that the monthly payments on interest-only mortgages tend to be cheaper than they would be on a comparable repayment mortgage; however, it is the borrower’s responsibility to raise enough capital over the mortgage’s term to repay the original loan.

Applying for an interest only mortgage

As interest-only mortgages are considered to be a higher lending risk than repayment, lenders tend to have more rigorous requirements from potential borrowers in order to secure this type of finance.

  • Repayment plan: During application borrowers may be required to a detailed savings or investment plan to illustrate how they are intending on raising the requisite capital over the course of the mortgage. Stating you intend to repay the original sum through the sale of the property, may not be sufficient for many lenders, as if property prices fall and you fall into negative equity lenders they risk out on getting back less than you originally lent them.

  • Deposit: While it is possible to secure a residential repayment mortgage with a loan to value (LTV) of around 95% for interest only most interest only lenders will need  to place a deposit of at least 25% of the property’s value  

  • Affordability: Lenders also tend to have more stringent affordability requirements for their interest only products. Certain lenders may have a requirement that each applicant earns at least £50,000 a year. Some lenders may also be less willing to allow applicants to include irregular sources of income such as bonuses, lenders may also require applicants to have better credit scores than would be necessary with repayment mortgages; However, some lenders may be less stringent.  

Before taking out an interest only mortgage

As with many financial products it is wise to thoroughly shop around different providers and plans before taking one out to try and find the best deal for a product that is suitable for your needs. You may also want to consider alternatives as well such as a repayment mortgage.

Mortgage adviser

Borrowers interested in interest only finance may want to use the services of an independent mortgage adviser, who can offer them impartial advice.

One that offers a whole-of-market service can use their professional knowledge of the industry to search across different providers on the behalf of their clients, to try and find them the best deal.

To find out if Fair Mortgages could help you, fill in the online contact form to request a call back. Alternatively you can call directly on: 0117 403 4474

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