Interest Only Mortgages

Need a deal which keeps monthly payments at their lowest?

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Mortgage Enquiries

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Mortgages Accepted

Buy a home with lower monthly payments

Make no repayments on your borrowing, only monthly interest charges. Is this the option for you? Ask our team today.

Why Choose MortgageKey for Interest Only Mortgages

We know the market

Our team’s knowledge of the interest only mortgage market, and excellent relationships with lenders, ensure you get the best offers.

Thousands of deals considered

We search and compare thousands of interest only mortgage deals to tailor a deal which is best suited to your current needs.

We’re completely independent

We’ve no tie-ins with certain lenders. As we’re fully independent and unbiased our focus is solely on finding the best option for you.

Pay nothing until completion

We don’t ask for any payment until we've found the right deal for you and your mortgage deal is complete.

Award-winning mortgage and loans experts – ready to help you today

Our team of specialists will guide you through the process of securing a mortgage, buying a home or taking out a loan – finding the very best deals for you and your family.

Mortgage & Loan Guides

Read our experts’ latest advice on a wide range of mortgage options to the tax implications of buying properties to let.

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Infographics

Making mortgages and loans simpler to understand is our key skill, and our infographics do just that!

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Hear from our Clients

Don’t just take our word for it, hear from our happy clients who we have helped through the mortgages and loans process.

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Interest Only Mortgages – Your Questions Answered

Interest Only Mortages can be an ideal option for those looking to lower their monthly payments, thereby giving them more cash to put to other use. 
 

How do Interest Only and Repayment Mortgages differ?

An interest only mortgage is exactly that as you only pay the interest rate on the amount you borrow from month to month until the end of your mortgage term.

However, you will still owe the original amount when your term has ended.

A repayment mortgage means you pay back an amount of what you've borrowed plus interest each month.

If you continue to make all of your payments, your debt will be settled at the end of your mortgage term.

Why do people choose Interest Only Mortgages?

The key reason most people choose this option is to lower their monthly payments, thereby giving them more cash to put to other use. To choose this option, lenders are likely to prefer you to have a large deposit.

With an interest only mortgage, if you borrow £250,000, over 25 years, on a 3% APR (Annual Percentage Rate) you would pay back £625 each month.

On a repayment mortgage, you could assume that you would pay around double that amount each month. Also, at the end of your interest only mortgage, you’d still owe the amount initially borrowed.

How do I pay off an Interest Only Mortgage?

Before you can acquire an interest only mortgage, your lender will want evidence of an approved repayment plan, for when your term comes to an end.

The simplest way can be to downsize by selling your home and moving to a cheaper property. The proceeds from the sale can then be used to pay off the outstanding mortgage balance. Depending on your lender, you may be also be able to include ISAs and stocks as part of your final payment.

Why choose MortgageKey for an Interest Only Mortgage?

Our team of award winning industry experts are dedicated to finding the right mortgage deal for you, from a lender you can trust. Our team will search through thousands of mortgage products and advise on what we feel is the best option for you given your personal circumstances and finances. We aim to make the process as seamless, straightforward as stress-free as possible, at all times.

What our clients are saying

  • Good communication from Mortgagekey, and so far so good, all seems to be going well. Would have no hesitation in recommending Mortgagekey.
    Wendy Wright
  • Wonderful service. As a first time buyer I would not hesitate to recommend. Thank you !!!
    Michael Spaul
  • As always, this is the second time I have used Mortgagekey. Everything is always seamless. There is no stress. Everything ticks along nicely in the ba...
    Catherine Howard
  • Efficient , great customer service and an easy process.
    Leila
  • Excellent service from the guys at Mortgage Key. Callum was amazing. Georgia and Gareth were awesome too. WELL DONE
    Mr Mohammad Razak
  • Excellent Service.
    K Gill
  • Great staff very helpful, they keep you upto date with everything.
    Mr M Shafqat
  • Absolutely amazing couldn’t have asked for a better mortgage company.
    Amy
  • Mortgagekey have been excellent so far in helping me and my partner, always happy to help and keep us up to date with the status of our mortgage appli...
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  • A perfect customer experience from start to finish: knowledgeable, reliable and lovely to talk to. Thank you Sally! X
    Michael Spaul
  • Extremely efficient and friendly and nothing is too much, they keep you informed every step of the way excellent service would highly recommend.
    Leanne Palmer
  • I have used Mortgagekey to remortgage two properties three times now. They have been excellent at every step of the way - and they got us great rates!
    JOHN
  • I would recommend mortgagekey because their professional service and keeping on top of things in a very difficult time and always keeping me up to da...
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  • Within a couple of hours Jamie had found us a lender after we were let down by our own bank that we have been with for over 30 years. Everything went ...
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  • Absolutely amazing service! Rory was fantastic from beginning to end- reassured me no end too! I would strongly recommend using Mortgage Key to anyo...
    S M Dalby
  • Excellent help to get a remortgage . Thank you . Efficient and knowledgeable.
    Laura R
  • Dealing with mortgage key has been effortless. Callum has made me feel at ease during the whole process and to be honest I cannot think of one bad thi...
    Daniel Mitchell
  • Always give excellent advice and service
    Nicola Rice
  • Really good service with these guys. The whole team were really informative through out even through the covid 19 pandemic! Couldn’t recommend more!...
    Leo Berry
  • Excellent service..very friendly and knowledgeable advisors...thank you Tracy..I can thoroughly recommend them. This is the fourth time I've used them...
    Pamela Davey

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