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Santander 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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Santander 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 Dec-2020
Monthly cost: £569.87 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 4% APRC
NatWest logo 1.59% Fixed Dec-2020 4% APRC 70% £1025.00 £569.87 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.59%
Rate type: Fixed Dec-2020
Monthly cost: £569.87 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 4% APRC
NatWest logo 1.59% Fixed Dec-2020 4% APRC 70% £1025.00 £569.87 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.71%
Rate type: Fixed Dec-2020
Monthly cost: £577.91 per month
Max LTV: 70%
Product fee: £995.00
Overall cost for comparison: 3.9% APRC
NatWest logo 1.71% Fixed Dec-2020 3.9% APRC 70% £995.00 £577.91 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.71%
Rate type: Fixed Dec-2020
Monthly cost: £577.91 per month
Max LTV: 70%
Product fee: £995.00
Overall cost for comparison: 3.9% APRC
NatWest logo 1.71% Fixed Dec-2020 3.9% APRC 70% £995.00 £577.91 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.73%
Rate type: Fixed Dec-2020
Monthly cost: £579.25 per month
Max LTV: 80%
Product fee: £1025.00
Overall cost for comparison: 3.9% APRC
NatWest logo 1.73% Fixed Dec-2020 3.9% APRC 80% £1025.00 £579.25 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.79%
Rate type: Fixed Dec-2020
Monthly cost: £583.30 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 4% APRC
NatWest logo 1.79% Fixed Dec-2020 4% APRC 70% £1273.00 £583.30 per month get quotes Call direct0800 158 2934 More details
Initial rate: 1.94%
Rate type: Fixed Dec-2023
Monthly cost: £593.50 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.5% APRC
NatWest logo 1.94% Fixed Dec-2023 3.5% APRC 70% £1025.00 £593.50 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.08%
Rate type: Fixed Dec-2023
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 Dec-2023 3.5% APRC 70% £1025.00 £603.12 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.08%
Rate type: Fixed Dec-2023
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 Dec-2023 3.5% APRC 70% £1025.00 £603.12 per month get quotes Call direct0800 158 2934 More details
Initial rate: 2.09%
Rate type: Fixed Dec-2020
Monthly cost: £603.81 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 4% APRC
NatWest logo 2.09% Fixed Dec-2020 4% APRC 70% £1273.00 £603.81 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

Santander Interest Only Mortgages

What is an interest only mortgage?

An interest only mortgage is a mortgage where the borrower only pays the interest generated on the capital borrowed. Unlike other mortgages, where you have to repay both the capital and the interest at the same time, the capital of an interest only mortgage has to be repaid in full at the end of the mortgage term.

When to use an interest only mortgage?

An interest only mortgage could be appropriate for a number of differed scenarios. Typically, interest only mortgages are utilised where the borrower wants to keep their monthly outgoings as low as they can.

An interest only mortgage could be a good option when a mortgage’s initial deal has expired. Alternatively, an interest only mortgage could be used to remortgage a property to release equity.

Risk of negative equity

It should be noted that interest only mortgages do increase the risk of negative equity, as the monthly payments made do not reduce the overall balance of the mortgage.

The amount of interest

The monthly mortgage payments are some of the smallest on the mortgage market, as they only cover the interest of the capital.

Although the payments are smaller, the amount of interest charged over the entire term of the mortgage is often more than a regular mortgage.

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Interest only mortgages with high street lenders

It is not uncommon for the requirements to qualify for an interest only mortgage to vary depending on the lender. However, lenders will often review the following:

Affordability:  Lenders will often prioritise affordability for an interest only mortgage. The majority of lenders will want an individual income of £50,000 or a joint income of £75,000 to ensure repayments are serviced.

Repayment:  All lenders will need to see a detailed repayment vehicle strategy in place before providing an interest only mortgage. A repayment vehicle strategy is the method that the borrower intends to use to repay the interest only mortgage. An example of a repayment vehicle strategy is a sale of a property. 

Loan to value (LTV):  Lenders will only agree an interest only mortgage up to a certain percentage (usually up to 75%). Higher LTV interest only mortgages are available through intermediaries and professional brokers.

Santander Interest only mortgages

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