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Barclays Interest Only Mortgages Call 0117 313 7780

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1.55% 2 Year Fixed

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Representative Example: Overall Cost For Comparison 4.1% APRC. Mortgage of £120,000 on property valued at £200,000 over 25 year term. Fixed for 2 years after which reverts to Post Office variable rate of 4.49%.

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Barclays Interest Only Mortgages

Compare interest only mortgage deals from lenders today.

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparisonMax LTVProduct feeMonthly cost Enquire
Initial rate: 1.71%
Rate type: Fixed Dec-2020
Monthly cost: £577.91 per month
Max LTV: 70%
Product fee: £995.00
Overall cost for comparison: 3.9% APRC
NatWest logo 1.71% Fixed Dec-2020 3.9% APRC 70% £995.00 £577.91 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.71%
Rate type: Fixed Dec-2020
Monthly cost: £577.91 per month
Max LTV: 70%
Product fee: £995.00
Overall cost for comparison: 3.9% APRC
NatWest logo 1.71% Fixed Dec-2020 3.9% APRC 70% £995.00 £577.91 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.79%
Rate type: Fixed Dec-2020
Monthly cost: £583.43 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 4% APRC
Royal Bank Of Scotland logo 1.79% Fixed Dec-2020 4% APRC 70% £1273.00 £583.43 per month get quotes Call direct0800 096 7447 More details
Initial rate: 1.79%
Rate type: Fixed Dec-2020
Monthly cost: £583.30 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 4% APRC
NatWest logo 1.79% Fixed Dec-2020 4% APRC 70% £1273.00 £583.30 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.94%
Rate type: Fixed Dec-2023
Monthly cost: £593.50 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.5% APRC
NatWest logo 1.94% Fixed Dec-2023 3.5% APRC 70% £1025.00 £593.50 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.09%
Rate type: Fixed Dec-2020
Monthly cost: £603.94 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 4% APRC
Royal Bank Of Scotland logo 2.09% Fixed Dec-2020 4% APRC 70% £1025.00 £603.94 per month get quotes Call direct0800 096 7447 More details
Initial rate: 2.09%
Rate type: Fixed Dec-2020
Monthly cost: £603.81 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 4% APRC
NatWest logo 2.09% Fixed Dec-2020 4% APRC 70% £1273.00 £603.81 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.09%
Rate type: Fixed Dec-2020
Monthly cost: £603.81 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 4% APRC
NatWest logo 2.09% Fixed Dec-2020 4% APRC 70% £1025.00 £603.81 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.09%
Rate type: Fixed Dec-2020
Monthly cost: £603.81 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 4% APRC
NatWest logo 2.09% Fixed Dec-2020 4% APRC 70% £1025.00 £603.81 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.09%
Rate type: Fixed Dec-2020
Monthly cost: £603.94 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 4% APRC
Royal Bank Of Scotland logo 2.09% Fixed Dec-2020 4% APRC 70% £1273.00 £603.94 per month get quotes Call direct0800 096 7447 More details
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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

Barclays Interest Only Mortgages

What is an interest only mortgage?

An interest only mortgage is a mortgage where the monthly repayments only cover the interest on the mortgage. The capital of the mortgage is not repaid monthly, but paid in its entirety at the end of the mortgage term.

When to use an interest only mortgage?

If you want to lower your monthly mortgage payments, then an interest only mortgage might be a good option for you.

Interest only mortgages can also be used to remortgage your property. This could be appealing, especially if you want to release some equity in your property, or remortgage to avoid your mortgage reverting to a standard variable rate following the expiration of your introductory rate.

Risk of negative equity

Falling into negative equity is when the value of your property reduces below the amount remaining on your mortgage.

There is a greater chance of falling into negative equity with an interest only mortgage, as the monthly payments do not reduce the overall balance of the mortgage.

The amount of interest

It should be noted that although interest mortgage monthly payments are low, the interest charged will likely be higher than other mortgages.

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Interest only mortgages with high street lenders

There is no definitive set of criteria adopted by traditional lenders. However, the majority of lenders will look into the following:

Affordability: Traditional lenders will often require a certain amount of income per year before granting an interest only mortgage. You will likely have to have an individual annual income of £50,000 or a joint income of £75,000.

Repayment:  Lenders will only agree to provide an interest only mortgage if you have a repayment vehicle strategy in place. A repayment vehicle strategy is simply how you plan to repay the mortgage in full at the end of the agreed term. An example of a repayment vehicle strategy is a sale of a property.

Loan to value (LTV):You will only be able to secure an interest only mortgage with a LTV up to a certain percentage. Most high street banks generally lend up to 75% LTV. It is possible to get higher LTV through a professional broker.

Barclays Interest only mortgages

Barclays offer an interest only mortgage with competitive rates of interest. If you want to see the latest Barclays interest only mortgage rates, then use our Barclays interest only mortgage calculator above. Simply put in your details and borrowing needs to see the best interest only mortgage deals for you.

Independent advice

If you are not sure whether an interest only mortgage is right for you, then speak to our independent mortgage broker team who will be able to offer impartial advice.

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