Make no repayments on your borrowing, only monthly interest charges. Is this the option for you? Ask our team today.
Our team’s knowledge of the interest only mortgage market, and excellent relationships with lenders, ensure you get the best offers.
We search and compare thousands of interest only mortgage deals to tailor a deal which is best suited to your current needs.
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We don’t ask for any payment until we've found the right deal for you and your mortgage deal is complete.
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.
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.
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.
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.
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.
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.
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