Interest Only Remortgage Calculator
Our Remortgage Service - helping you make the right decision
"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 remortgage 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 remortgage 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 remortgage. 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:
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.
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