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Mortgage & Equity Release - Call Us 0117 403 4474

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What is your mortgage for?

 

2.49% 2 Year Fixed

  • 60% LTV
  • Overall cost for comparison 3.90% APRC

Representative Example: Mortgage of £100,000 on property valued at £200,000 over term of 25 years. Rate fixed untilfor 26 months after which reverts to HSBC variable rate of 4.04%.

Go to HSBC website »

HSBC 2 Year Fixed

  • Initial Rate 2.94%
  • 95% LTV
  • Overall cost for comparison 4%

Representative Example: 

Mortgage of £100k on property valued at £200k over term of 26 months. Rate fixed for 2 years after which reverts to HSBC variable rate of 4.04%.

Go to HSBC website »

Lloyds Interest Only Mortgages

UK Mortgage rates are at all time lows!

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

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparisonMax LTVProduct feeMonthly cost Enquire
Initial rate: 2.53%
Rate type: 2.53% Fixed to 01/10/2024
Monthly cost: £810.23 per month
Max LTV: 85%
Product fee: £1,295
Overall cost for comparison: 4.5% APRC
Virgin Money logo 2.53% 2.53% Fixed to 01/10/2024 4.5% APRC 85% £1,295 £810.23 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 2.54%
Rate type: 2.54% Fixed for 5 years
Monthly cost: £811.14 per month
Max LTV: 60%
Product fee: £490
Overall cost for comparison: 3.5% APRC
first direct logo 2.54% 2.54% Fixed for 5 years 3.5% APRC 60% £490 £811.14 per month get quotes Call direct0808 296 5500
Initial rate: 2.54%
Rate type: 2.54% Fixed for 2 years
Monthly cost: £811.14 per month
Max LTV: 60%
Product fee: £490
Overall cost for comparison: 3.9% APRC
first direct logo 2.54% 2.54% Fixed for 2 years 3.9% APRC 60% £490 £811.14 per month get quotes Call direct0808 296 5500
Initial rate: 2.54%
Rate type: 2.54% Fixed to 31/07/2024
Monthly cost: £811.14 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.9% APRC
HSBC logo 2.54% 2.54% Fixed to 31/07/2024 3.9% APRC 60% £999 £811.14 per month get quotes
Initial rate: 2.54%
Rate type: 2.54% Fixed to 01/10/2024
Monthly cost: £811.14 per month
Max LTV: 65%
Product fee: £995
Overall cost for comparison: 4.5% APRC
Virgin Money logo 2.54% 2.54% Fixed to 01/10/2024 4.5% APRC 65% £995 £811.14 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 2.58%
Rate type: 2.58% Fixed to 01/10/2027
Monthly cost: £814.78 per month
Max LTV: 65%
Product fee: £995
Overall cost for comparison: 4.0% APRC
Virgin Money logo 2.58% 2.58% Fixed to 01/10/2027 4.0% APRC 65% £995 £814.78 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 2.59%
Rate type: 2.59% Fixed for 2 years
Monthly cost: £815.69 per month
Max LTV: 75%
Product fee: £490
Overall cost for comparison: 3.9% APRC
first direct logo 2.59% 2.59% Fixed for 2 years 3.9% APRC 75% £490 £815.69 per month get quotes Call direct0808 296 5500
Initial rate: 2.59%
Rate type: 2.59% Fixed to 31/07/2024
Monthly cost: £815.69 per month
Max LTV: 70%
Product fee: £999
Overall cost for comparison: 3.9% APRC
HSBC logo 2.59% 2.59% Fixed to 31/07/2024 3.9% APRC 70% £999 £815.69 per month get quotes
Initial rate: 2.59%
Rate type: 2.59% Fixed to 31/07/2024
Monthly cost: £815.69 per month
Max LTV: 75%
Product fee: £999
Overall cost for comparison: 3.9% APRC
HSBC logo 2.59% 2.59% Fixed to 31/07/2024 3.9% APRC 75% £999 £815.69 per month get quotes
Initial rate: 2.59%
Rate type: 2.59% Fixed to 02/08/2024
Monthly cost: £815.69 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 4.1% APRC
Santander logo 2.59% 2.59% Fixed to 02/08/2024 4.1% APRC 60% £999 £815.69 per month get quotes Call us0117 403 4474 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

Lloyds Interest Only Mortgages

What is an interest only mortgage?

An interest only mortgage is a mortgage that only obliges you to repay the interest of the capital each month. This means that the interest only monthly mortgage repayments are some of the lowest on the market.

The capital of an interest only mortgage is repaid at the end of the agreed term.

When to use an interest only mortgage?

If you want to minimise your monthly outgoings, you could take out an interest only mortgage because their monthly repayments are often so low.

In addition, an interest only mortgage could be utilised to remortgage your property. This could be appealing if you want to release the equity in your property. 

Alternatively, if your initial mortgage deal is about to expire, you could remortgage on an interest only mortgage to avoid paying your existing lender’s standard variable rate.

Risk of negative equity

When purchasing a property, it is possible for your property’s value to drop below the amount of capital remaining on your mortgage; this is called negative equity.

It is important to note that interest only mortgages increase the chances of falling into negative equity.

The amount of interest

Interest only mortgage payments are smaller than the majority of other mortgage payments.

Despite the low monthly repayments, interest only mortgages often have higher rates of mortgages than regular mortgages. This means that if you take out an interest only mortgage, you will likely pay a higher rate of interest.

Mortgage Advice Button 1

Interest only mortgages with high street lenders

Traditional lenders that offer interest only mortgages will all have slightly different requirements, but the majority of them will review the following during the application process:

Affordability:  The lenders’ main concern is the affordability of an interest only mortgage. Lenders want make sure you can afford the interest only mortgage payments each month. Lenders will usually require you to have an individual annual income of £50,000 or a joint income of £75,000.

Repayment:  Your application for an interest only mortgage will only be successful if you have a clear repayment vehicle strategy in place. A repayment vehicle strategy is the method you intend to use to repay the entire capital of the mortgage.

Loan to value (LTV): Traditional lenders will only provide an interest only mortgage with a certain LTV. The majority of lenders will only provide interest only mortgages up to 75%. If you require higher LTV on your interest only mortgage, it is advisable to contact a broker.

Lloyds Interest only mortgages

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