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HSBC Interest Only Mortgages Call 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%.

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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 »

HSBC Interest Only Mortgages

UK Mortgage rates are at all time lows!

See the tables below for a selection of interest only leading deals or use our independent mortgage advice service to compare the market.

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparison Product fee Monthly cost Enquire
Initial rate: 4.24%
Rate type: 5 year fixed
Monthly cost: £636 per month
Product fee: £995
Overall cost for comparison: 7% APRC
NatWest logo 4.24% 5 year fixed 7% APRC £995 £636 per month get quotes
Initial rate: 4.29%
Rate type: 5 year fixed
Monthly cost: £643.5 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.29% 5 year fixed 7.1% APRC £995 £643.5 per month get quotes
Initial rate: 4.44%
Rate type: 5 year fixed
Monthly cost: £666 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.44% 5 year fixed 7.1% APRC £995 £666 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: 4.48%
Rate type: 5 year fixed
Monthly cost: £672 per month
Product fee: £1,495
Overall cost for comparison: 7.1% APRC
NatWest logo 4.48% 5 year fixed 7.1% APRC £1,495 £672 per month get quotes
Initial rate: 4.49%
Rate type: 5 year fixed
Monthly cost: £673.5 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
NatWest logo 4.49% 5 year fixed 7.1% APRC £0 £673.5 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: 4.59%
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
Initial rate: 4.64%
Rate type: 5 year fixed
Monthly cost: £696 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
NatWest logo 4.64% 5 year fixed 7.1% APRC £0 £696 per month get quotes
Initial rate: 4.64%
Rate type: 2 year fixed
Monthly cost: £696 per month
Product fee: £995
Overall cost for comparison: 7.9% APRC
NatWest logo 4.64% 2 year fixed 7.9% APRC £995 £696 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

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. 

Mortgage Advice Button 1

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 offers 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.

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Looking for a HSBC interest only mortgage? Call us on 0117 403 4474 or Request A Callback

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