Compare Interest Only Mortgage Deals

Compare the best interest only mortgage deals from every UK lender that offers interest only mortgages using our whole of market comparison of cheap interest only mortgage rates and see which best suits your needs. We make finding the best interest only mortgage deal for your circumstances quick and easy.
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HSBC 2 Year 2.45% Discount Special
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.49% variable
for 24 months
3.94%3.6% APR
 
TSB 2 Year BBR+1.04%
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.54% tracker
until 31 May 2016
3.99%3.7% APR
 
TSB 2 Year 1.54% Fixed >£200K
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.54% fixed
until 31 May 2016
3.99%3.7% APR
 
HSBC 2 Year 1.59% Fixed Special
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.59% fixed
until 31 Jul 2016
3.94%3.7% APR
 
Post Office 2 Year 1.63% Fixed
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
65%1.63% fixed
until 31 May 2016
4.49%4.2% APR
 
Post Office 2 Year BBR+1.24%
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.74% tracker
until 31 May 2016
4.49%4.1% APR
 
TSB 2 Year BBR+1.29% Remortgage + Cashback
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.79% tracker
until 31 May 2016
3.99%3.8% APR
Available for existing customers only. Such mortgages might not be listed on the lender's website. Available for remortgage only.
 
TSB 2 Year BBR+1.29% Remortgage
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.79% tracker
until 31 May 2016
3.99%3.7% APR
Available for remortgage only.
 
TSB 2 Year 1.79% Fixed Remortgage + Cashback >£200K
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.79% fixed
until 31 May 2016
3.99%3.7% APR
Available for existing customers only. Such mortgages might not be listed on the lender's website. Available for remortgage only.
 
TSB 2 Year 1.79% Fixed Remortgage >£200K
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.79% fixed
until 31 May 2016
3.99%3.8% APR
Available for remortgage only.
 
TSB 2 Year 1.89% Fixed
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.89% fixed
until 31 May 2016
3.99%3.7% APR
 
HSBC 2 Year 1.89% Fixed Special
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
60%1.89% fixed
until 30 Jun 2016
3.94%3.7% APR
 
Virgin 2 Year BBR+1.39%
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
70%1.89% tracker
until 01 Jul 2016
4.79%4.4% APR
Interest only mortgages are not available where property value is less than £500k or where combined applicants income is less than £100k. Maximum LTV is 70%.
 
Virgin 2 Year BBR+1.39% Remortgage
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
70%1.89% tracker
until 01 Jul 2016
4.79%4.4% APR
Available for remortgage only. Interest only mortgages are not available where property value is less than £500k or where combined applicants income is less than £100k. Maximum LTV is 70%.
 
HSBC Lifetime BBR+1.49% Special
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
-1.99% tracker
-2.1% APR
 
TSB 2 Year 1.99% Fixed
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
75%1.99% fixed
until 31 May 2016
3.99%3.7% APR
 
TSB 2 Year 1.99% Fixed Remortgage + Cashback >£200K
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
75%1.99% fixed
until 31 May 2016
3.99%3.9% APR
Available for existing customers only. Such mortgages might not be listed on the lender's website. Available for remortgage only.
 
TSB 2 Year 1.99% Fixed Remortgage >£200K
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
75%1.99% fixed
until 31 May 2016
3.99%3.9% APR
Available for remortgage only.
 
Virgin 2 Year BBR+1.49%
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
70%1.99% tracker
until 01 Jul 2016
4.79%4.4% APR
Interest only mortgages are not available where property value is less than £500k or where combined applicants income is less than £100k. Maximum LTV is 70%.
 
Virgin 2 Year BBR+1.49% Remortgage
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
70%1.99% tracker
until 01 Jul 2016
4.79%4.4% APR
Available for remortgage only. Interest only mortgages are not available where property value is less than £500k or where combined applicants income is less than £100k. Maximum LTV is 70%.
 

Your home may be repossessed if you do not keep up repayments on your mortgage.

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How to Find the Best Interest Only Mortgage Deals

Interest only mortgages are a popular choice but you need to fully understand how do interest only mortgages work so you can decide if they're the right option for you, and if so find the best deal.

How to Find the Best Interest Only Mortgage Deals

The reality is that interest only mortgages are actually one of the more simple types of mortgage.

Essentially they are a bit of a “does what it says on the tin” mortgage in that your repayments pay off the mortgages interest only.

The alternative is a repayment mortgage where your monthly repayments are used to pay down your mortgage borrowing as well as the interest on your debt.

The main benefit of an interest only mortgage is primarily the fact that it allows you to pay a smaller amount each month in return for owning your own home. It's for this reason that this type of mortgage is so popular with first time buyers.

The main drawback of an interest only mortgage, and one that you must consider before you apply, is that even if you make every single one of your monthly repayments, you'll still owe the mortgage company the full amount you borrowed at the end of your mortgage term.

This is because your repayments haven't been paying down the capital, simply servicing the interest on the loan. As such, you'll need to find an alternative means of settling your mortgage debt.

The most common way to do this is to save or invest throughout your mortgage term so you have the money available.

An alternative is to take out a deal with the best interest only mortgage rates for a short while and then, when you're in a better financial situation, switch to a repayment mortgage so that you're paying down your borrowing too.

Understandably, when looking for the best interest only mortgages the majority of people will look for the lowest interest rates first.

However, it is important to remember that these are not the only thing that should be considered because the terms of the agreement will differ with each mortgage provider and the importance of these should not be underestimated.

When you factor in any additional potential charges associated with your application for interest only mortgages or punitive payments should you wish to start paying off all or some of your outstanding balance early, the interest rate you originally thought was a good deal could actually leave you paying more than other slightly higher mortgage deals.

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