Interest Only Mortgages
Looking For the Best Interest Only Mortgages?
- Find a mortgage that’s right for you
- Connect with UK-based mortgage lenders
- Compare mortgages from a range of different lenders
Find an Interest Only Mortgage
Looking for the best interest only mortgages for you from across the UK?
Buying a house can be a difficult and confusing process. A lot of people struggle when it comes to finding the right type of mortgage for their needs. An interest only mortgage might be the right type of mortgage for you, but there are still many different offers by different UK-based mortgage companies, which can make it difficult.
You can use our easy quote comparison tool to help guide you. Comparing interest only mortgage quotes can help you find the best mortgage deal for you. It can also help you save money.
What is an interest only mortgage?
An interest only mortgage means that your monthly payments only cover the interest that is due on your mortgage loan. At the end of your mortgage period, you will still owe the full cost of the house when you bought it. You would need to pay off this cost at the end of the mortgage.
What is a repayment mortgage?
A repayment mortgage is a mortgage where your monthly payments also pay off a small portion of the original mortgage amount. This means that once you have finished paying it off, you would fully own the house.
Are interest only mortgages still available?
While it can be harder to get a mortgage at the moment, interest only mortgages are still available. If you want to find a mortgage provider who offers interest only mortgages, you can use our quote comparison tool to find the best interest only mortgage deal.
How much deposit do I need for an interest only mortgage?
You will still need a deposit for an interest only mortgage. The amount of deposit required varies based on the type of property you want. Generally, the deposit amount of a mortgage is between 5% and 15%, but this varies between different mortgage providers. Compare mortgage quotes to find what deposit you would need.
How can I pay off an interest only mortgage?
You can save money to pay off the cost of your mortgage loan at the end of your interest only mortgage. Some mortgage lenders will also let you make payments during the length of your mortgage.
Is an interest only mortgage good?
An interest-only mortgage may be suitable for you if you have an irregular income. An interest only mortgage has lower monthly payments than a repayment mortgage, meaning that if you do not earn as much one month, you are less likely to lose your home. You can then put money towards the mortgage payments when you are earning more.
Is an interest only mortgage a secured loan?
Mortgages are a type of secured loan. This means that the loan is ‘secured’ by an asset. Like any other mortgage, if you fail to make payments on your interest-only mortgage, your house could be repossessed. Your house could also be repossessed if you do not pay off the original loan amount at the end of your mortgage – you could also have to sell off the house and use the funds to repay the mortgage.
To get a better idea of how to budget, compare interest only mortgages now.