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Halifax 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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Halifax 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: 3.7% APRC
NatWest logo 1.71% Fixed Dec-2020 3.7% 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: 3.7% APRC
NatWest logo 1.71% Fixed Dec-2020 3.7% 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: 3.8% APRC
Royal Bank Of Scotland logo 1.79% Fixed Dec-2020 3.8% 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: £1025.00
Overall cost for comparison: 3.7% APRC
NatWest logo 1.79% Fixed Dec-2020 3.7% APRC 70% £1025.00 £583.30 per month get quotes Call direct0800 158 2934 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: 3.8% APRC
NatWest logo 1.79% Fixed Dec-2020 3.8% 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: 3.3% APRC
NatWest logo 1.94% Fixed Dec-2023 3.3% APRC 70% £1025.00 £593.50 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.04%
Rate type: Tracker Dec-2020
Monthly cost: £600.36 per month
Max LTV: 70%
Product fee: £995.00
Overall cost for comparison: 3.8% APRC
NatWest logo 2.04% Tracker Dec-2020 3.8% APRC 70% £995.00 £600.36 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.04%
Rate type: Tracker Dec-2020
Monthly cost: £600.36 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.8% APRC
NatWest logo 2.04% Tracker Dec-2020 3.8% APRC 70% £1025.00 £600.36 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.04%
Rate type: Tracker Dec-2020
Monthly cost: £600.49 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.8% APRC
Royal Bank Of Scotland logo 2.04% Tracker Dec-2020 3.8% APRC 70% £1025.00 £600.49 per month get quotes Call direct0800 096 7447 More details
Initial rate: 2.04%
Rate type: Tracker Dec-2020
Monthly cost: £600.36 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
NatWest logo 2.04% Tracker Dec-2020 3.8% APRC 70% £1273.00 £600.36 per month get quotes Call direct0800 158 2934 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

Halifax Interest Only Mortgage

What is an interest only mortgage

Interest only mortgages are mortgages where the monthly payments only cover the interest on the mortgage, which leaves the capital of the mortgage to be repaid at the end of the mortgage term.

When to use an interest only mortgage?

Often interest only mortgages are utilised to drastically reduce the borrower’s monthly outgoings.

In addition, interest only mortgages may be taken out to remortgage a property. This could be help release equity in a property to raise capital. Alternatively, an interest only mortgage could be used to secure a better deal after your initial mortgage deal has expired. 

Risk of negative equity

It is possible to fall into negative equity when the value of the property drops below the remaining amount on a mortgage.

Bear in mind that interest only mortgages expose borrowers to a great risk of falling into negative equity. This is because their monthly payments do not reduce the overall balance of the mortgage.

The amount of interest

Typically, the interest only mortgage monthly payments are lower than the majority of other mortgages. However, it should be noted that the amount of interest charged on an interest only mortgage is often the highest on the mortgage market.

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Interest only mortgages with high street lenders

High street lenders’ criteria for interest only mortgages are different from lender to lender. However, it is likely that they will consider one or all of the following:

Affordability:  Lenders will want to ensure that the interest only mortgage is affordable, to minimise the risk of borrowers falling into arrears. Lenders will usually have a minimum income requirement of £50,000 per year (for individuals) or £75,000 (for joint income).

Repayment:  It is impossible to secure an interest only mortgage without a repayment vehicle strategy in place. The need for a repayment vehicle strategy is to ensure that the entire interest only mortgage is repaid at the end of the agreed term. An example of a repayment vehicle strategy is a sale of a property.

Loan to value (LTV): The majority of lenders will only lend up to a certain percentage. Unless you approach a specialist lender through a professional broker, you will only be able to access up to 75% loan to value.

Halifax Interest only mortgages

Halifax offer an interest only mortgage with competitive rates of interest. If you want to see the latest Halifax interest only mortgage rates, then use our Halifax 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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