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NatWest Interest Only Mortgages Call 0117 313 7780

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1.78% 5 Year Fixed 

  • 60% LTV
  • Overall cost for comparison 3.80%

Representative Example: 

Mortgage of £100,000 on property valued at £200,000 over term of 25 years.

Rate fixed for 5 years after which reverts to NatWest variable rate of 3.99%.

Call Direct on 0800 158 2934

NatWest 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: 1.66%
Rate type: Fixed Jul-2020
Monthly cost: £411.55 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
NatWest logo 1.66% Fixed Jul-2020 3.8% APRC 60% £1273.00 £411.55 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.66%
Rate type: Fixed Jul-2020
Monthly cost: £411.67 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
Royal Bank Of Scotland logo 1.66% Fixed Jul-2020 3.8% APRC 60% £1273.00 £411.67 per month get quotes Call direct0800 096 7447 More details
Initial rate: 1.66%
Rate type: Fixed Jul-2020
Monthly cost: £411.67 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
Royal Bank Of Scotland logo 1.66% Fixed Jul-2020 3.8% APRC 60% £1273.00 £411.67 per month get quotes Call direct0800 096 7447 More details
Initial rate: 1.66%
Rate type: Fixed Jul-2020
Monthly cost: £411.55 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
NatWest logo 1.66% Fixed Jul-2020 3.8% APRC 60% £1273.00 £411.55 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.84%
Rate type: Tracker Jul-2020
Monthly cost: £420.25 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
NatWest logo 1.84% Tracker Jul-2020 3.8% APRC 60% £1273.00 £420.25 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.84%
Rate type: Tracker Jul-2020
Monthly cost: £420.37 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
Royal Bank Of Scotland logo 1.84% Tracker Jul-2020 3.8% APRC 60% £1273.00 £420.37 per month get quotes Call direct0800 096 7447 More details
Initial rate: 1.84%
Rate type: Tracker Jul-2020
Monthly cost: £420.37 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
Royal Bank Of Scotland logo 1.84% Tracker Jul-2020 3.8% APRC 60% £1273.00 £420.37 per month get quotes Call direct0800 096 7447 More details
Initial rate: 1.84%
Rate type: Tracker Jul-2020
Monthly cost: £420.25 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.8% APRC
NatWest logo 1.84% Tracker Jul-2020 3.8% APRC 60% £1273.00 £420.25 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.89%
Rate type: Fixed Jul-2023
Monthly cost: £422.81 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.3% APRC
Royal Bank Of Scotland logo 1.89% Fixed Jul-2023 3.3% APRC 60% £1273.00 £250 cashback £422.81 per month get quotes Call direct0800 096 7447 More details
Initial rate: 1.89%
Rate type: Fixed Jul-2023
Monthly cost: £422.68 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.3% APRC
NatWest logo 1.89% Fixed Jul-2023 3.3% APRC 60% £1273.00 £250 cashback £422.68 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

NatWest Interest Only Mortgages

What is an interest only mortgage?

Interest only mortgages are mortgages where your monthly payments only cover the interest of the mortgage. Unlike repayment mortgages, where you have to pay both the capital and the interest each month, the capital of the interest only mortgage has to be repaid at the end of the mortgage term.

When to use an interest only mortgage?

Interest only mortgages can be used in many different set of circumstances. However, they are often used to keep borrowers’ monthly outgoings as low as possible; this could be useful when their initial mortgage deal has come to an end or to when they want to release equity in their property to fund a project.

Risk of negative equity

Conversely, interest only mortgages expose borrowers to a higher risk of falling into negative equity. This is because monthly payments only cover the interest and do not reduce the mortgage balance throughout the mortgage term.

The amount of interest

Interest only mortgage monthly payments are often some of the lowest in the market, as they are only for the interest of the capital.

Despite the size of the monthly mortgage payments, it should be noted that the amount of interest paid over the entire mortgage term will be higher than other mortgages.

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Interest only mortgages with high street lenders

The features of an interest only mortgage and the requirements to qualify for one will depend on the lender. Typically, lenders will consider the following:

Affordability: Lenders will consider the affordability of the interest only mortgage to ensure the borrower can keep up with the payments. Lenders often will require a joint income of £75,000 per year or an independent income of £50,000.

Repayment: Before granting any interest only mortgages, lenders will require sight of a detailed repayment vehicle strategy to ensure the repayment of the entire mortgage at the end of the term. A repayment strategy is the method that the borrower will use to repay the mortgage; this could be the sale of a property.

Loan to value (LTV): The majority of lenders will only provide interest only mortgages up to 75% of the value of the property. It is possible to secure higher LTV interest only mortgages through professional brokers.

NatWest Interest only mortgages

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