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Virgin Money Interest Only Mortgages 0330 057 1528

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Virgin Money Interest Only Mortgages

UK Mortgage rates are at all time lows!

See the tables below for a selection of leading Virgin Money interest only 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: 1.29%
Rate type: Fixed 63 months
Monthly cost: £702.26 per month
Max LTV: 75%
Product fee: £1,495
Overall cost for comparison: 3.1% APRC
Virgin Money logo 1.29% Fixed 63 months 3.1% APRC 75% £1,495 £702.26 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 1.35%
Rate type: Fixed 63 months
Monthly cost: £707.27 per month
Max LTV: 65%
Product fee: £995
Overall cost for comparison: 3.1% APRC
Virgin Money logo 1.35% Fixed 63 months 3.1% APRC 65% £995 £707.27 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 1.37%
Rate type: Fixed 63 months
Monthly cost: £708.94 per month
Max LTV: 65%
Product fee: £0
Overall cost for comparison: 3.1% APRC
Virgin Money logo 1.37% Fixed 63 months 3.1% APRC 65% £0 £708.94 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 1.64%
Rate type: Fixed 27 months
Monthly cost: £731.79 per month
Max LTV: 80%
Product fee: £1,495
Overall cost for comparison: 3.9% APRC
Virgin Money logo 1.64% Fixed 27 months 3.9% APRC 80% £1,495 £731.79 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 1.79%
Rate type: Fixed 27 months
Monthly cost: £744.67 per month
Max LTV: 65%
Product fee: £995
Overall cost for comparison: 3.9% APRC
Virgin Money logo 1.79% Fixed 27 months 3.9% APRC 65% £995 £744.67 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 1.95%
Rate type: Fixed 63 months
Monthly cost: £758.56 per month
Max LTV: 80%
Product fee: £1,495
Overall cost for comparison: 3.4% APRC
Virgin Money logo 1.95% Fixed 63 months 3.4% APRC 80% £1,495 £758.56 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 1.95%
Rate type: Fixed 123 months
Monthly cost: £758.56 per month
Max LTV: 65%
Product fee: £995
Overall cost for comparison: 2.7% APRC
Virgin Money logo 1.95% Fixed 123 months 2.7% APRC 65% £995 £758.56 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 2.06%
Rate type: Fixed 27 months
Monthly cost: £768.21 per month
Max LTV: 65%
Product fee: £0
Overall cost for comparison: 3.9% APRC
Virgin Money logo 2.06% Fixed 27 months 3.9% APRC 65% £0 £768.21 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 2.14%
Rate type: Fixed 123 months
Monthly cost: £775.27 per month
Max LTV: 65%
Product fee: £0
Overall cost for comparison: 2.8% APRC
Virgin Money logo 2.14% Fixed 123 months 2.8% APRC 65% £0 £775.27 per month get quotes Call direct0330 057 1528 Broker Only Deal
Initial rate: 2.15%
Rate type: Fixed 39 months
Monthly cost: £776.15 per month
Max LTV: 65%
Product fee: £995
Overall cost for comparison: 3.8% APRC
Virgin Money logo 2.15% Fixed 39 months 3.8% APRC 65% £995 £776.15 per month get quotes Call direct0330 057 1528 Broker Only Deal
12

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

Virgin Money 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.

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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.

Virgin Money Interest only mortgages

Virgin Money offer an interest only mortgage with competitive rates of interest.

If you want to see the latest Virgin Money interest only mortgage rates, then use our Virgin Money 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 Virgin Money interest only mortgage? Call us on 0117 403 4474 or Request A Callback

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