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HSBC 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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HSBC 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: 1.59%
Rate type: Fixed Mar-2021
Monthly cost: £569.87 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 4% APRC
NatWest logo 1.59% Fixed Mar-2021 4% APRC 70% £1025.00 £569.87 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.82%
Rate type: Fixed Mar-2021
Monthly cost: £585.34 per month
Max LTV: 80%
Product fee: £1025.00
Overall cost for comparison: 4% APRC
NatWest logo 1.82% Fixed Mar-2021 4% APRC 80% £1025.00 £250 cashback £585.34 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.08%
Rate type: Fixed Mar-2024
Monthly cost: £603.12 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.5% APRC
NatWest logo 2.08% Fixed Mar-2024 3.5% APRC 70% £1025.00 £603.12 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.29%
Rate type: Tracker Mar-2021
Monthly cost: £617.72 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 4.1% APRC
NatWest logo 2.29% Tracker Mar-2021 4.1% APRC 70% £1025.00 £617.72 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.49%
Rate type: Fixed Mar-2021
Monthly cost: £627.36 per month
Max LTV: 70%
Product fee: £30.00
Overall cost for comparison: 4% APRC
NatWest logo 2.49% Fixed Mar-2021 4% APRC 70% £30.00 £627.36 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.54%
Rate type: Fixed Mar-2024
Monthly cost: £630.89 per month
Max LTV: 70%
Product fee: £30.00
Overall cost for comparison: 3.6% APRC
NatWest logo 2.54% Fixed Mar-2024 3.6% APRC 70% £30.00 £630.89 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.94%
Rate type: Tracker Mar-2021
Monthly cost: £659.54 per month
Max LTV: 70%
Product fee: £30.00
Overall cost for comparison: 4.1% APRC
NatWest logo 2.94% Tracker Mar-2021 4.1% APRC 70% £30.00 £659.54 per month get quotes Call direct0800 158 2934 More details
Initial rate: 4.25%
Rate type: Variable Term
Monthly cost: £761.14 per month
Max LTV: 80%
Product fee: £529.00
Overall cost for comparison: 3.8% APRC
NatWest logo 4.25% Variable Term 3.8% APRC 80% £529.00 £761.14 per month get quotes Call direct0800 158 2934 More details

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

HSBC Interest Only Mortgages

What is an interest only mortgage?

Interest only mortgages’ monthly payments only cover the interest of a mortgage. Although the monthly repayments are only the interest of the mortgage, the entire capital must be repaid at the end of the mortgage term.

When to use an interest only mortgage?

Interest only mortgages can be used for a variety of scenarios, but mostly they are used to secure lower monthly outgoings.

Interest only mortgages can be used to remortgage a property. This may be an appealing prospect to release equity or when an existing mortgage’s initial deal has expired.

Risk of negative equity

Negative equity is when the value of the property falls below the remaining amount left on a mortgage.

Interest only mortgages increase the chance of negative equity because their monthly payments do not reduce the overall balance of the mortgage.

The amount of interest

Although the interest only mortgage payments are small, they often have some of the highest interest rates on the mortgage market. This means the amount of interest you pay will likely be more than a regular mortgage. 

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Interest only mortgages with high street lenders

Interest only mortgage criteria and the terms of an interest only mortgage will be determined by the lender. Although there is no set requirements for an interest only mortgage, lenders will usually consider the following:

Affordability:  Typically, lenders’ main concern is whether the interest only mortgage is affordable or not. To ensure that applicants do not fall into arrears, lenders will only grant interest only mortgages to those with income over £50,000 per year (for individuals) or £75,000 (for joint income).

Repayment:  A repayment vehicle strategy is the method that the borrower intends to use to repay the loan at the end of the mortgage. An example of a repayment vehicle strategy is a sale of a property. Lenders will refuse any application for an interest only mortgage without a clear repayment vehicle strategy in place.

Loan to value (LTV):  Interest only mortgages through high street lenders will usually only be up to 75%. In the event that a higher LTV is required, it is advisable to contact a specialist broker for higher LTV interest only mortgages.

HSBC Interest only mortgages

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

 Interest -Only -Mortgage -Advice

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