Interest-Only Mortgages
Looking for lower monthly repayments? We have advisors who specialise in interest-only mortgages and can explain the options, costs, and repayment strategies.
Interest-Only Mortgage Advice
With interest-only mortgages, your monthly payment covers only the interest on the loan, which keeps repayments lower than with a repayment mortgage, but it means the capital balance does not reduce over time.
At the end of the term, you will still owe the original loan amount.
Because of this, lenders require a clear repayment plan before they approve an interest-only mortgage. This might be selling the property, using investments or savings, or switching to a repayment mortgage later on. These products are most commonly used for buy-to-let mortgages, where many landlords prefer lower monthly repayments and plan to repay the loan by selling or remortgaging.
At Online Mortgage Advisor, we have advisors who specialise in interest-only mortgages. They will explain how the products work, check whether your repayment plan is acceptable to lenders, and guide you to the deals most suitable for your circumstances. We can help you secure a buy-to-let or residential interest-only mortgage.
Check your affordability
Use our calculator to see how much you could borrow and what your monthly payments would look like on an interest-only basis.
Read our guides
Browse our interest-only mortgage guides to learn about repayment plans, eligibility rules, and the pros and cons compared to repayment mortgages.
Compare interest-only mortgage deals
Use our comparison tool to view lenders currently offering interest-only products.
Speak to an expert
Get matched with an advisor who specialises in interest-only mortgages and knows which lenders are most likely to accept your repayment plan.
We have advisors who understand how lenders assess interest-only mortgages and can help you find the right deal. Make an enquiry today.
Our Guides
Expert mortgage guidance tailored for interest-only borrowers.
Mortgage Tools & Calculators
Professional tools designed to help you understand your mortgage options, compare rates, and make informed decisions about your financial future.
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Frequently Asked Questions
Still have questions about mortgages, rates, or the application process? Our comprehensive FAQ section covers everything from first-time buyer queries to complex remortgage scenarios.
This will depend on your circumstances, but you should be aware that you will have to pay off the capital at the end of your term.
Most lenders have stricter criteria for interest-only mortgages, and they will require a high income, good credit score, and a large deposit.
A mortgage advisor will search the market for you and recommend the best deal based on your situation. They do more than compare rates. They understand lender criteria, manage the paperwork, and know how to get complex cases approved.
With expertise in specialist mortgages and strong lender relationships, they save you time, reduce the risk of rejection, and often access deals not available directly.
Online Mortgage Advisor is an FCA-authorised mortgage broker serving customers nationwide. We match you with specialists who excel in situations like yours.
Over 600,000 borrowers have trusted us to help them find the right deal, and we are rated Excellent on Trustpilot.
Your first chat with an advisor is always free and comes with no obligation. If you choose to go ahead, fees vary depending on the complexity of your case, but you will always know the cost upfront. You will never be charged without agreeing to it first.
Yes, it’s possible, though the eligibility criteria are significantly stricter than for standard repayment mortgages. While many major high-street banks have pulled back from offering these, there is still a healthy market of specialist lenders and private banks that offer residential interest-only mortgages to the right applicants.
To qualify, the most critical requirement is a credible repayment vehicle. This is a documented plan for how you intend to pay off the capital lump sum at the end of the term (such as the sale of secondary property, an investment portfolio, or a pension lump sum). Lenders will also typically require a lower Loan-to-Value (LTV) ratio, meaning you will need a larger deposit or significant equity, alongside a higher minimum income threshold.
These mortgages often involve complex underwriting and are frequently offered by lenders who do not deal directly with the public. Our mortgage advisors can review your repayment strategy to ensure it meets current lender standards and leverage their market access to find a competitive rate that suits your financial plans.
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Find out your best mortgage options today
You’ll have a dedicated team by your side from questions to completion, with clear choices and costs explained upfront. We’ll match you with a mortgage advisor specialising in your unique situation.