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Yorkshire Bank Interest Only Mortgages Call 0117 313 7780

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Yorkshire Bank 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: 1.35%
Rate type: Fixed Jan-2022
Monthly cost: £554.13 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.9% APRC
Royal Bank Of Scotland logo 1.35% Fixed Jan-2022 3.9% APRC 70% £1025.00 £250 cashback £554.13 per month get quotes Call direct0800 068 7706 More details
Initial rate: 1.35%
Rate type: Fixed Jan-2022
Monthly cost: £554.01 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.9% APRC
NatWest logo 1.35% Fixed Jan-2022 3.9% APRC 70% £1025.00 £250 cashback £554.01 per month get quotes Call direct0800 068 8567 More details
Initial rate: 1.39%
Rate type: Tracker Jan-2022
Monthly cost: £556.75 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.9% APRC
Royal Bank Of Scotland logo 1.39% Tracker Jan-2022 3.9% APRC 70% £1025.00 £250 cashback £556.75 per month get quotes Call direct0800 068 7706 More details
Initial rate: 1.39%
Rate type: Tracker Jan-2022
Monthly cost: £556.63 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.9% APRC
NatWest logo 1.39% Tracker Jan-2022 3.9% APRC 70% £1025.00 £250 cashback £556.63 per month get quotes Call direct0800 068 8567 More details
Initial rate: 1.56%
Rate type: Fixed Nov-2021
Monthly cost: £567.87 per month
Max LTV: 80%
Product fee: £1205.00
Overall cost for comparison: 4.3% APRC
Post Office logo 1.56% Fixed Nov-2021 4.3% APRC 80% £1205.00 £567.87 per month get quotes Call direct0808 178 6813 More details
Initial rate: 1.62%
Rate type: Fixed Nov-2024
Monthly cost: £573.90 per month
Max LTV: 80%
Product fee: £2015.00
Overall cost for comparison: 3.8% APRC
Post Office logo 1.62% Fixed Nov-2024 3.8% APRC 80% £2015.00 £573.90 per month get quotes Call direct0808 178 6813 More details
Initial rate: 1.65%
Rate type: Fixed Nov-2021
Monthly cost: £569.83 per month
Max LTV: 75%
Product fee: £210.00
Overall cost for comparison: 4.1% APRC
Post Office logo 1.65% Fixed Nov-2021 4.1% APRC 75% £210.00 £569.83 per month get quotes Call direct0808 178 6813 More details
Initial rate: 1.66%
Rate type: Fixed Jan-2025
Monthly cost: £574.67 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.4% APRC
Royal Bank Of Scotland logo 1.66% Fixed Jan-2025 3.4% APRC 70% £1025.00 £250 cashback £574.67 per month get quotes Call direct0800 068 7706 More details
Initial rate: 1.66%
Rate type: Fixed Jan-2025
Monthly cost: £574.55 per month
Max LTV: 70%
Product fee: £1025.00
Overall cost for comparison: 3.3% APRC
NatWest logo 1.66% Fixed Jan-2025 3.3% APRC 70% £1025.00 £250 cashback £574.55 per month get quotes Call direct0800 068 8567 More details
Initial rate: 1.67%
Rate type: Fixed Nov-2024
Monthly cost: £577.26 per month
Max LTV: 75%
Product fee: £1705.00
Overall cost for comparison: 3.4% APRC
Post Office logo 1.67% Fixed Nov-2024 3.4% APRC 75% £1705.00 £577.26 per month get quotes Call direct0808 178 6813 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

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.

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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 offer 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.

Yorkshire Bank Interest Only Mortgage Advice

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