Compare Latest mortgage offers:
2 Year Fixed - Interest Only Deal
- Initial Rate - 1.21% APR (MARKET LEADING UK RATE)
- 60% Loan To Value (LTV)
- £250 Cash Back
Overall cost for comparison 3.8% APRC
Call RBS FREE on 0800 096 7966
UK Mortgage Comparison
In recent years the options open to you if you are looking for a great mortgage deal have improved significantly. 2,3,5 and 10 year fixed rates are at all time lows.
Whilst rates are low the right mortgage deal for you will depend on your personal circumstances.
Things to be mindful of include:
- Lenders are keen understandably to ensure at the end of the mortgage term the loan will be repaid. Criteria for lenders will vary but all will want to understand how you intend to pay off the mortgage at the end of the term. If you opt for a repayment mortgage, your monthly repayment will include a portion of capital repayment. With an interest only mortgage you will need to have an alternative repayment strategy.
- A repayment vehicle strategy will be required. Some lenders will accept sale of property as a way of paying off the debt. Some will want to see a saving plan such as regular investment into ISAs or investment vehicle. Where sale of property is not acceptable to lenders, they will often want to see statements of your investments as evidence that a repayment vehicle is in place.
- Lenders will want to ensure your income supports the mortgage repayments. Most lenders work on an income multiple basis (typically up to 4.5 times annual salary)
- Previous credit history - If you have had credit blips in the past this may effect the rate of interest offered to you.
A key consideration for lenders is affordability when they lend. In assessing whether an interest only mortgage is right for you income criteria will come into play.
For example for a £100k mortgage, a lender typically would need to see an income between £20,000 to £30,000 depending. Some lenders offer higher income multiple mortgages for professionals e.g. doctors or lawyers.
This criteria will vary so if you are unsure speak to a broker such as ourselves will help you get the right deal for your circumstances.
Borrowing in retirement?
Free up funds from your home so you can live the life you want to.
Post Office through their Retirement Link Mortgage » provide an interest only mortgage option which allows you to borrow on an interest only basis up to age 80.
This could be right for you if you are looking for a good alternative to equity release or you are looking to home improvements or raise funds for something special e.g. a child's wedding or first home deposit.
You can borrow up to 30% of the value of your property and your property must be worth at least £250,000 to qualify. Click here for more details »>
5 year fixed rate interest only mortgage with no product fee
Post Office is offering a great deal on their 5 year fixed rate interest only mortgage with no product fee.
They also offer a great 3 year interest only fixed rate deal. Call Post Office on 0808 178 6813 or click here to find out how much you could borrow »
Historically for older borrowers (aged 60+) flexible options for homeowners looking to raise capital or simply remortgage to get a better rate or to switch to an interest only basis were limited.
The good news is that this has changed - in the last 12 months a number of lenders have been launching mortgages in retirement products which are designed to help borrowers stay in their homes without being pressurised to downsize.
More information can be found here on retirement mortgages »
Independent Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice.