01273 736536

INTEREST ONLY
MORTGAGE

Make an informed decision

INTEREST ONLY

Make an informed decision

Interest only – is it right for you?

If you currently have an interest only mortgage on your home, you may be aware of the potential benefit of lower monthly payments; however, are you aware of the potential risks you face by not clearing or reducing the original debt?

It is best for you to chat over your objectives and circumstances with an independent mortgage adviser who will assist you in finding the right repayment or interest only mortgage to suit your situation.

Monthly payments

How much will you be borrowing?
£

Over how many years?

What is the interest rate?
%


Repayment mortgage will be

£0

Interest Only mortgage will be

£0

Chat over your objectives with an Expert Mortgage Adviser now on

01273 736536

Information

Please remember to add your deposit to the borrowing amount indicated on the calculator to give you an idea of your purchase price.

This calculator is designed to give you an indication of the amount you can borrow on a buy to let basis. The actual amount you can borrow depends on the surveyor’s opinion of the rental income, the type of product chosen and the level of deposit/equity.

It may be possible to borrow more than our calculator shows you, that’s where the expertise of our personal advisers come in and our independent status benefits you.

*All potential borrowing is subject to underwriting and credit status

Is interest only best for you… in 4 simple steps

Step 1

Book a time to chat over your objectives and circumstances with a personal mortgage adviser.

Step 2

Let your personal mortgage adviser save you time and money by researching the market and finding the best option for you.

Step 3

Once you are happy with the advice your mortgage adviser will apply online for the best mortgage product for you.

Step 4

Your dedicated relationship manager will correspond with the lender until your new mortgage product begins. We will remind you when the new deal is ending too!

Get the advice you need, speak with an independent adviser today!

What you need to know…

If you already have an interest only mortgage on your home, it may be that you don’t meet the lenders current criteria for interest only. This can mean that you are stuck on the lenders standard variable rate which is generally a considerably higher rates than the best mortgage deals available today. Because of this you may be able to switch to a repayment mortgage where the monthly payments are similar.

Is it cheaper to have an interest only mortgage than a repayment mortgage?

Your monthly payments are likely to be less on interest only however because the mortgage debt won’t be reducing, repayment mortgages are normally cheaper in the long run. Compare using our interest only and repayment mortgage calculator.

How much deposit or equity do I need?

If you choose to have any part of your mortgage on an interest only basis you will normally need a minimum of 25% deposit or equity within your home.

Do I need a repayment vehicle to repay an interest only mortgage?

For interest only mortgages, held on your home… lenders now require evidence of a credible repayment vehicle, so they know at the end of the term you will not be left in a ‘sticky situation’. Lenders will accept a repayment vehicle such as an existing endowment, pension or perhaps the sale of other investment property. If you have a large amount of equity within your home, some lenders may still accept the sale of the mortgaged property (your home) as the repayment vehicle.

Interest only as a repayment type for Buy to Let mortgages is treated differently by most lenders and sale of the mortgaged property is typically an acceptable repayment vehicle.

If I choose an interest only mortgage is there anything else I should consider?

You will be aware that at the end of an interest only mortgage you will need to clear the original debt. You may feel that with property prices rising you could sell your home for more than you paid for it to clear the loan and have some equity left over. This is probably true, but you may not have enough equity to purchase a new home close to your friends and family and may need to move to an area where house prices are more affordable.

Our independent mortgage brokers can assist you in finding the right repayment or interest only mortgage to suit your situation.

Useful calculators

How much can
I borrow?

Your annual income
£

Partners annual income (if applicable)
£


You could borrow up to

Chat over your objectives with an Expert Mortgage Adviser now on

01273 736536

Information

Please remember to add your deposit to the borrowing amount indicated on the calculator to give you an idea on your purchase price. This calculator is designed to give you an indication of the amount you can borrow. The actual amount you can borrow does depend on your credit commitments, your regular monthly outgoings and how each lender assesses your income. It may be possible to borrow more than our calculator shows you, that’s where the expertise of our personal advisers come in and our independent status benefits you. *All potential borrowing is subject to affordability checks and credit status

Monthly payments

How much will you be borrowing?
£

Over how many years?

What is the interest rate?
%


Repayment mortgage will be

£0

Interest Only mortgage will be

£0

Chat over your objectives with an Expert Mortgage Adviser now on

01273 736536

Information

Please remember to add your deposit to the borrowing amount indicated on the calculator to give you an idea of your purchase price.

This calculator is designed to give you an indication of the amount you can borrow on a buy to let basis. The actual amount you can borrow depends on the surveyor’s opinion of the rental income, the type of product chosen and the level of deposit/equity.

It may be possible to borrow more than our calculator shows you, that’s where the expertise of our personal advisers come in and our independent status benefits you.

*All potential borrowing is subject to underwriting and credit status

How much deposit
will I need?

Purchase price
£


You'll need a deposit of at least

Chat over your objectives with an Expert Mortgage Adviser now on

01273 736536

Information

This calculator is designed to give you an indication of the minimum deposit you will need to purchase for a certain price. The amount of deposit needed may vary according to your circumstance and the property type. To find out exactly how much deposit you will need, chat with our expert mortgage advisers.

5 star Google reviews

Paul


Kevin, Tina and Madison were always there to reassure and help us when needed, and are the nicest number crunchers out there!

David


They are not only the total professionals, but have great customer service and keep you informed at every step of the process.

Lorraine


They do their best to find a product and a solution to help you achieve the outcome you want.

Latest from the blog

Property & Mortgage Market Predictions for 2019

Happy New Year to you and welcome to 2019. At the start of each year we like to look back and reflect on what happened over the past 12 months. Then we look forward 12 months and give predictions on property prices and interest rates. Firstly, let’s look at what...

read more

Why is it good to hire a mortgage advisor?

Mortgage market is undoubtedly competitive. It can be really hard for the consumers to know what exactly is available as there is no lack of providers offering different products at different rates. And choosing the right product from the right company is not always...

read more

Merry Christmas to you all and welcome to our new website

We have been counting down the days until the holidays in the office, and with just a few days left…. we would all like to wish you a very Merry Christmas and a fab new year. We’ve been brushing up on our design skills recently, and with the help of our skilled...

read more

Want to send us a message?


 

Contact

For expert mortgage advice
01273 736536

Earn £100

Recommend a friend & receive £100 for every referral!