Interest Only Mortgage Calculator
Our Mortgage Service
Based in Bristol and Edinburgh we can offer you a first class mortgage service:
Special features of what we offer include:
- Whole of market service - we compare over 50 UK lenders
- Telephone based service - you are welcome to come to our offices if you prefer a face to face meeting
- Latest Rates - Access to leading market mortgage rates
- Exclusive Offers - Access to mortgage deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- Personal service from start to finish
- Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
To investigate your interest only mortgage options call our Bristol based mortgage advisor team on 0117 403 4474 or fill in our call back form.
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.
With an interest only mortgage your monthly payment only covers the interest charged on your mortgage, so you could benefit from lower repayments in the shorter term.
However, because you’re not actually reducing the mortgage balance itself, it’s essential to research the interest only mortgage market carefully before making a decision – our free interest only mortgage calculator compares over 5,000 different mortgage deals instantly to help you choose.
How does an interest only mortgage work?
With interest-only mortgages you only pay the interest due on the amount you borrowed each month. While this can mean lower monthly payments than would be required for a standard capital and interest repayment mortgage of equivalent value, it does mean that you will still owe the entire capital that you originally borrowed at the end of the mortgage term.
How is an interest only mortgage repaid?
Lenders require that you have a repayment plan or strategy in place if you want to take out an interest-only mortgage. You must be able to show the lender how you can repay the mortgage at the end of the term when taking out an interest only mortgage.
Usually, you will need to have a method of repaying the capital at the end of the mortgage – known as a repayment vehicle – in place when the mortgage term begins. Examples of repayment vehicles include:
- stocks and shares ISAs
- investment bonds
- unit trusts
- endowment policies
- other properties or assets
Whatever the repayment plan you have in place to pay off the capital on your interest only mortgage, it’s important to review it frequently. To ensure you are getting the best deal, use the interest only mortgage comparison tool above to see the latest interest only mortgage deals and offers.
To compare top mortgage interest rates call our mortgage team on 0117 403 4474 or request callback.