This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

Yorkshire Bank Interest Only Mortgages Call 0117 403 4474

What is your mortgage for?

use mortgage calculator
 

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%.

Book appointment with us »

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 »

Yorkshire Bank Interest Only Mortgages

UK Mortgage rates are at all time lows!

See the tables below for a selection of leading 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 comparison Product fee Monthly cost Enquire
Initial rate: 4.45%
Rate type: 5 year fixed
Monthly cost: £667.5 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.45% 5 year fixed 7.1% APRC £995 £667.5 per month get quotes
Initial rate: 4.50%
Rate type: 5 year fixed
Monthly cost: £675 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.50% 5 year fixed 7.1% APRC £995 £675 per month get quotes
Initial rate: 4.57%
Rate type: 5 year fixed
Monthly cost: £685.5 per month
Product fee: £995
Overall cost for comparison: 7.2% APRC
NatWest logo 4.57% 5 year fixed 7.2% APRC £995 £685.5 per month get quotes
Initial rate: 4.62%
Rate type: 5 year fixed
Monthly cost: £693 per month
Product fee: £995
Overall cost for comparison: 7.2% APRC
NatWest logo 4.62% 5 year fixed 7.2% APRC £995 £693 per month get quotes
Initial rate: 4.67%
Rate type: 5 year fixed
Monthly cost: £700.5 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
NatWest logo 4.67% 5 year fixed 7.1% APRC £0 £700.5 per month get quotes
Initial rate: 4.68%
Rate type: 5 year fixed
Monthly cost: £702 per month
Product fee: £1,495
Overall cost for comparison: 7.2% APRC
NatWest logo 4.68% 5 year fixed 7.2% APRC £1,495 £702 per month get quotes
Initial rate: 4.69%
Rate type: 5 year fixed
Monthly cost: £703.5 per month
Product fee: £1,495
Overall cost for comparison: 7.2% APRC
Yorkshire Building Society logo 4.69% 5 year fixed 7.2% APRC £1,495 £703.5 per month get quotes
Initial rate: 4.77%
Rate type: 5 year fixed
Monthly cost: £715.5 per month
Product fee: £0
Overall cost for comparison: 7.2% APRC
NatWest logo 4.77% 5 year fixed 7.2% APRC £0 £715.5 per month get quotes
Initial rate: 4.79%
Rate type: 5 year fixed
Monthly cost: £718.5 per month
Product fee: £495
Overall cost for comparison: 7.2% APRC
Yorkshire Building Society logo 4.79% 5 year fixed 7.2% APRC £495 £250 cashback £718.5 per month get quotes
Initial rate: 4.82%
Rate type: 2 year fixed
Monthly cost: £723 per month
Product fee: £995
Overall cost for comparison: 7.9% APRC
NatWest logo 4.82% 2 year fixed 7.9% APRC £995 £723 per month get quotes
12345

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

Yorkshire Bank Interest Only Mortgage

What is an interest only mortgage?

Interest only mortgages are mortgages that require you to repay the entire capital at the end of the mortgage term. The monthly payments with an interest only mortgage are relatively low, as they are made up of just the interest of the mortgage.

When to use an interest only mortgage?

If you feel that you are having trouble servicing your current mortgage payments, then you could use an interest only mortgage to reduce the size of your monthly mortgage bill.

Not only could an interest only mortgage be used to reduce your monthly outgoings, but it could be used to remortgage your property. This could be useful if you need to release equity in your property.

Alternatively, you could use an interest only mortgage to remortgage and get a better rate on your mortgage by avoiding your lender’s standard variable rate.

Risk of negative equity

Negative equity occurs when the remaining amount on your mortgage is more than the value of your home.

If you take out an interest only mortgage, then there is a greater chance of falling into negative equity.

The amount of interest

With an interest only mortgage, you will pay less every month than a normal mortgage. However, the majority of interest only mortgages have higher interest rates than regular mortgages.  Therefore, you will pay more in interest over the entire mortgage term than you would with a regular mortgage.

Mortgage Advice Button 1

Interest only mortgages with high street lenders

The interest only mortgage lenders you find on the high street will not have set criteria, but most of them will consider the following:

Affordability:  Throughout the application process, traditional lenders will focus on affordability to ensure you can service monthly payments. In order to qualify for an interest only mortgage, you will need an individual annual income of £50,000 or a joint income of £75,000.

Repayment:  Traditional lenders are reluctant to provide an interest only mortgage to anyone without a repayment vehicle strategy in place. A repayment vehicle strategy is the plan you intend to execute to repay the mortgage at the end of the mortgage.

Loan to value (LTV): Typically, traditional lenders will only provide mortgages up to 75% of the property’s value. This means you will need to put down a deposit of at least 25% to secure an interest only mortgage. It is possible to secure higher LTV interest only mortgages, and thus put down a smaller deposit, through a professional broker.

Yorkshire Bank Interest only mortgages

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

house icon

Looking for a Yorkshire Bank interest only mortgage? Call us on 0117 403 4474 or Request A Callback

For a FREE initial conversation about your mortgage options complete our short enquiry form.

request call back

Please confirm your details

Extra information

The optional information below will help us to contact you

Our Services