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Mortgage & Equity Release - Call Us 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 »

Post Office 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 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

Post Office Interest Only Mortgages

What is an interest only mortgage?

Interest-only mortgages may be an appealing prospect, as their monthly payments are smaller than other mortgages. This is because their monthly payments are only made up of the interest on the mortgage and the capital of the mortgage has to be repaid at the end of the mortgage term.

When to use an interest only mortgage?

An interest only mortgage is a viable option to decrease the amount you pay on your mortgage repayments each month.

Also, an interest only mortgage could be used to remortgage your property. This may be helpful if you are looking to release equity in your property, or if you want to avoid your mortgage reverting to a standard variable rate following the expiration of your introductory rate.

Risk of negative equity

If you take out an interest only mortgage, then you will be more likely to fall into negative equity. This is because their monthly payments do not reduce the overall balance of the mortgage.

Negative equity is when the value of your property reduces below the amount remaining on your mortgage.

The amount of interest

Despite the fact that the interest only mortgage monthly payments are low, the interest rates on interest only mortgages are typically higher than with regular mortgages.

Mortgage Advice Button 1

Interest only mortgages with high street lenders

Traditional lenders’ application requirements for interest only mortgages will differ depending on the lender. But, it is likely that they will consider one or all of the following:

Affordability:  To minimise the risk of you falling into arrears, lenders will require you to have an income of at least £50,000 or a joint income of at least £75,000.

Repayment:  To ensure you repay the entire capital of the loan, lenders will need you to have a repayment vehicle strategy in place. A repayment vehicle strategy is the method that you intend to use to repay the mortgage at the end of the term. An example of a repayment vehicle strategy is a sale of a property.

Loan to value (LTV): High street lenders will only provide up to a certain percentage of loan to value, which is normally 75%. If you need a higher loan to value on your interest only mortgage, you may benefit from contacting a professional broker. A good broker will have access to specialist lenders that are prepared to provide higher LTV interest only mortgages.

The Post Office Interest only mortgages

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