This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

Looking for an interest only mortgage, see our HSBC interest only mortgage calculator.

This makes our LTV . Invalid LTV.

Call Post Office 0808 178 6813
Post Office logo
Fixed Jul-2020 From Post Office
Initial rate 1.63% Jul-2020
Maximum LTV 60%
Overall cost of comparison 4.1% APRC
See deal
FREE Valuation
Post Office Interest Only Mortgages. Borrowing In Retirement Options Up To Age 80.
Call Post Office 0808 178 6813
Post Office logo
Fixed Jul-2020 From Post Office
Initial rate 1.63% Jul-2020
Maximum LTV 60%
Overall cost of comparison 4.1% APRC
See deal
FREE Valuation
Post Office Interest Only Mortgages. Borrowing In Retirement Options Up To Age 80.
Call NatWest 0800 068 8567
NatWest logo
Fixed Jul-2020 From NatWest
Initial rate 1.66% Jul-2020
Maximum LTV 60%
Overall cost of comparison 3.8% APRC
See deal
Call Royal Bank Of Scotland 0800 068 7706
Royal Bank Of Scotland logo
Fixed Jul-2020 From Royal Bank Of Scotland
Initial rate 1.66% Jul-2020
Maximum LTV 60%
Overall cost of comparison 3.8% APRC
See deal
Call NatWest 0800 068 8567
NatWest logo
Fixed Jul-2020 From NatWest
Initial rate 1.66% Jul-2020
Maximum LTV 60%
Overall cost of comparison 3.8% APRC
See deal
Call Virgin Money 0330 057 1528
Virgin Money logo
Fixed Sep-2021 From Virgin Money
Initial rate 1.74% Sep-2021
Maximum LTV 65%
Overall cost of comparison 4.2% APRC
See deal

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

See the next 6 mortgages

Request Mortgage Quote

Mortgage Quotes & Advice

Our independent mortgage service provides:

  • FREE initial mortgage consultation
  • Access to exclusive mortgage deals not available on the high street
  • A dedicated mortgage adviser and case handler to deal with your mortgage from enquiry to completion

"Our mortgage team is committed to providing you with an excellent mortgage service". Adam Arnott, Head of Mortgages & Protection.

Mortgage details

Initial rate:
Initial rate period:
Overall cost for comparison:
Maximum loan to value:
Product fee:

To find out more, call on

Website:
Lines are open:
Mon: 8am - 8pm
Tue: 8am - 8pm
Wed: 8am - 8pm
Thu: 8am - 8pm
Fri: 8am - 8pm
Sat: 9am - 4pm
Sun: Closed
Calls may be recorded

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

This comparison simply includes all mortgage services

Please make sure you meet the following criteria:

What is an interest only mortgage?

Unlike repayment mortgages, which require both the capital and the interest repayments each month, interest only mortgages only require you to cover the interest of your mortgage. However, just as any mortgage, interest only mortgages must be fully repaid at the end of the term.

The advantage of an interest only mortgage is that the monthly repayments are often some of the lowest on the market.  This could be appealing if you want to keep your monthly outgoings to a minimum.

Although the monthly payments are generally smaller, the interest charged over the full mortgage is typically higher than other mortgages. Furthermore, there is a greater risk of negative equity with an interest only mortgage. This is because the monthly payments do not reduce the overall mortgage balance.

HSBC have a number of mortgage deals, which include interest only mortgages. To find the best deal for you, use our HSBC interest only mortgage calculator at the top of the page.

Why do people choose an interest only mortgage?

Choosing an interest only mortgage has its perks, and one of the main advantages of an interest only mortgage is that it can keep your monthly outgoings low.

Interest only mortgage when mortgage deal has come to an end: If you want potentially competitive interest rates and smaller monthly payments, then you should consider an interest only mortgage.  The HSBC calculator at the top of the page allows you to see the best interest only mortgages available, which may be a good place to start if your mortgage deal has come to an end.

Release equity in your home: It is possible to remortgage your property with an interest only mortgage as a way to access property finance. If you have equity in your property, you could remortgage with an interest only mortgage to fund any of the following projects:

  • Home improvements
  • New Kitchen
  • New Ensuite bathroom
  • Consolidate other existing debts.

Through an HSBC interest only mortgage, you could release a potentially large amount of equity to finance your project.

How to get an interest only mortgage

The criteria for an interest only mortgage can change from lender to lender; there is no standard application process of set of requirements. However, lenders will usually need the following:

  • A low loan to value (LTV): Typically, lenders will only provide a mortgage with a low LTV. It is not uncommon for a lender to refuse to provide a mortgage for more than 75% LTV. It should be noted that it is possible to get a higher LTV, but you will likely need the assistance of a professional broker.
  • A repayment vehicle strategy: You will need to provide details of your repayment vehicle strategy (the way you intend to repay the mortgage by the end of the term). An example of a repayment vehicle strategy is using the proceeds of the sale of your existing property.

Independent advice

If you are not sure whether now is the right time to remortgage or whether you can get an interest only deal, then speak to our independent mortgage broker team who will be able to offer impartial advice.

Latest news

Cost of fixed rate mortgages have started to increase as Bank of England rate rise looms

A number of high street banks have started to increase their mortgage rates. The reason for this is that banks are having to pay more to access the funds they lend out to UK homeowners.

Newletter signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

Let's get social now! Twitter Facebook

About us

mortages.direct is a trading style of Fair Investment Company.

We've been comparing and recommending mortgage deals for many years so you can trust you're in good hands.