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Interest Only Mortgage Hotline call now 0117 403 4474

What is your mortgage for?

 
Details sort by initial rateLenderInitial rate Rate type Overall cost for comparison Product fee Monthly cost Enquire
Initial rate: 4.45%
Rate type: 5 year fixed
Monthly cost: £667.5 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.45% 5 year fixed 7.1% APRC £995 £667.5 per month get quotes
Initial rate: 4.50%
Rate type: 5 year fixed
Monthly cost: £675 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.50% 5 year fixed 7.1% APRC £995 £675 per month get quotes
Initial rate: 4.57%
Rate type: 5 year fixed
Monthly cost: £685.5 per month
Product fee: £995
Overall cost for comparison: 7.2% APRC
NatWest logo 4.57% 5 year fixed 7.2% APRC £995 £685.5 per month get quotes
Initial rate: 4.62%
Rate type: 5 year fixed
Monthly cost: £693 per month
Product fee: £995
Overall cost for comparison: 7.2% APRC
NatWest logo 4.62% 5 year fixed 7.2% APRC £995 £693 per month get quotes
Initial rate: 4.67%
Rate type: 5 year fixed
Monthly cost: £700.5 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
NatWest logo 4.67% 5 year fixed 7.1% APRC £0 £700.5 per month get quotes
Initial rate: 4.68%
Rate type: 5 year fixed
Monthly cost: £702 per month
Product fee: £1,495
Overall cost for comparison: 7.2% APRC
NatWest logo 4.68% 5 year fixed 7.2% APRC £1,495 £702 per month get quotes
Initial rate: 4.69%
Rate type: 5 year fixed
Monthly cost: £703.5 per month
Product fee: £1,495
Overall cost for comparison: 7.2% APRC
Yorkshire Building Society logo 4.69% 5 year fixed 7.2% APRC £1,495 £703.5 per month get quotes
Initial rate: 4.77%
Rate type: 5 year fixed
Monthly cost: £715.5 per month
Product fee: £0
Overall cost for comparison: 7.2% APRC
NatWest logo 4.77% 5 year fixed 7.2% APRC £0 £715.5 per month get quotes
Initial rate: 4.79%
Rate type: 5 year fixed
Monthly cost: £718.5 per month
Product fee: £495
Overall cost for comparison: 7.2% APRC
Yorkshire Building Society logo 4.79% 5 year fixed 7.2% APRC £495 £250 cashback £718.5 per month get quotes
Initial rate: 4.82%
Rate type: 2 year fixed
Monthly cost: £723 per month
Product fee: £995
Overall cost for comparison: 7.9% APRC
NatWest logo 4.82% 2 year fixed 7.9% APRC £995 £723 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

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. 

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Compare Interest Only Mortgage Rates

Interest-only mortgage rates work on the premise that you just pay the interest due on the amount you borrowed every month. Each month, you’ll pay less than you would on the same value repayment mortgage, due to the fact that you're solely repaying the interest, not the mortgage capital itself.

You will still owe the quantity you originally borrowed at the end of the mortgage term - therefore you will be compelled to have a payment arrangement set up to pay back the complete value of the property at the end of the mortgage term.

How do I repay an interest only mortgage?

By regularly investing the cash that you save on monthly capital repayments into a ‘repayment vehicle’, like an ISA, a pension fund or other alternative investments, you build up a balance over the term of the mortgage that you can then use to pay off the complete mortgage balance.

There is a possible risk to an interest only mortgage to be aware of, that isn’t there if you are taking out a repayment mortgage.

If you do not have enough funds obtainable to repay the capital fully at the close of the term, you could face having to sell your property to pay off the mortgage balance.

Why choose interest only mortgage rates?

There are many reasons why you might contemplate getting an interest only mortgage, such as:

  • Cheaper on a monthly basis - The prospect of lower monthly payments may be an appealing choice and will hopefully create a mortgage that is more cost-effective within the short term.

  • Often more flexible - Interest only mortgages will typically provide more flexibility that repayment mortgages. For instance, you can often be able to offer overpayments one month and only pay interest in the subsequent month as dictated by your own financial priorities.

  • Potentially, the prospect of spare money - If your repayment vehicle performs very well over the term of the mortgage, you may find that you end up in a position to afford to pay off the capital with some further money left over afterwards.

What to be aware of with interest only mortgage rates

While the monthly repayments you pay out on an interest-only mortgage will probably less than with a repayment mortgage, there are a few things to bear in mind:

  • Less secure than a repayment mortgage deal - There's no guarantee that your repayment vehicle is going to perform to an adequate degree to make sure that you are able to pay off the mortgage fully at the close of the term.

  • Can be a problem to obtain – Back in the property boom of the Nineties and early 2000s, quite a few mortgage borrowers took out interest-only mortgages based on the belief that the rise in price of their property alone would be enough to pay off the capital at the finish of the mortgage term. As a result, several borrowers neglected to line up adequate repayment vehicles. Subsequently many mortgage suppliers will often not lend on an interest-only basis due to the chance of negative equity because of future falls in property values.

  • A large deposit may be a requirement – While you may save on your monthly repayments with an interest only mortgage, it may be tricky to access one unless you're able to offer a considerable initial deposit.

To compare top mortgage rates and get the best interest only mortgage deals for you, use the mortgage repayment calculator to compare over 5,000 deals tailored to your personal circumstances.

Speak to our specialist team to help you find the right mortgage option for you. To speak to one of our mortgage advisers click here »

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