Compare interest-only remortgages

Compare interest-only remortgage deals and find an affordable home loan. The monthly repayments will only cover the interest so you will need to pay the capital off separately.

Get free mortgage advice from an expert broker

See interest-only remortgages from 90+ lenders across the whole of market

Royal bank of Scotland logo
tsb logo
halifax logo
accord logo
santander logo
HSBC logo
Woman on a sofa with a coffee

What is an interest-only remortgage?

An interest-only remortgage is an interest-only mortgage that you take out after a previous interest-only mortgage. 

Borrowers often move their mortgage at the end of a fixed-rate period to avoid moving onto the lender’s Standard Variable Rate (SVR), which can often mean more expensive repayments. Or if you are already on an SVR, you might want to lock into a fresh interest-only mortgage to save money.

It may also be beneficial to remortgage on an interest only deal if your property’s value has increased because this enables you to access a lower loan to value (LTV) and a cheaper interest rate.  

Borrowers who have a lump sum could also pay off some of the capital on the loan to qualify for a lower LTV rate at remortgage.

If you want to take out more money against the property, perhaps for building improvements or developments, you could release cash through a remortgage.  

Interest-only remortgages are more readily available for higher value transactions, wealthier borrowers and buy-to-let investors.

How to compare interest-only remortgage deals

Add your details

Edit your mortgage information to see the most accurate deals for you.

Compare deals

We'll show you deals from over 90 lenders to compare.

Get your mortgage with Mojo

Our expert broker partner will assess your eligibility and help you get your deal.

Benefits of an interest-only remortgage

  • Switch to a lower rate to save money

  • Use an increase in property value to move to a lower LTV

  • Borrow more money against the property 

  • Increased flexibility over finances for higher value borrowers

Downsides of an interest-only remortgage

  • Interest-only mortgage choice is limited for higher LTVs

  • Lenders have more restrictive criteria for interest-only customers

  • Borrowers will need to prove they have a repayment vehicle

  • Choice is narrower for borrowers at the lower end of the property market

Young man with smartphone outdoors

How is an interest-only remortgage repaid?

Interest-only mortgages allow borrowers to repay just the interest on a mortgage during a set term with the capital repaid at the end of the loan. 

Lenders look for solid proof that the underlying capital can be repaid at the end of the term before granting a remortgage.

Acceptable methods of repaying the loan vary by lender but all will want to see that the strategy is credible. Depending on the risk of the repayment, some lenders may require higher income thresholds.

Interest-only repayment vehicles

Borrowers looking to remortgage interest-only loans will need to prove they have a credible plan to repay the underlying capital at the end of the term.

Below are some of the repayment vehicles that are accepted by lenders. 

Endowment policies

Lenders will be looking to see that the projected sum at maturity will need to be enough to cover the capital.

Stocks and shares

An investment portfolio can usually be used to repay the loan but there may be stipulations on the types of investments, for example, they may be restricted to the FTSE stock exchange and be based in the UK.

A stocks and shares ISA

An ISA can be part of an investment portfolio or standalone vehicle. Some lenders may require that the account has been held for at least 12 months.

Unit trusts

This is another type of investment that can be used as a repayment vehicle. Unit trusts can be used alongside other stocks and shares as part of an overall investment portfolio.

Investment bonds

These investments will need to be based in the UK and can be part of a wider investment portfolio.

Pension schemes

A percentage of retirement savings may be used if the overall projected fund is large enough.


Bonuses are accepted by some lenders. They will expect the capital to be paid off periodically.

Sale of a property 

Many lenders will permit you to sell the property to repay the mortgage as long as there is a certain level of equity in the home.

Father feeding little daughter with baby formula from bottle at home

Is applying for an interest-only remortgage different to a repayment remortgage?

The normal lender criteria will apply to interest-only remortgages but lenders tend to have additional criteria that borrowers need to meet. 

Minimum income requirements are more stringent for interest-only, with the bar starting at around £40,000 a year. Depending on the repayment strategy, some lenders want to see as much as £100,000 a year.  

Furthermore, the loan-to-value ratios on offer are lower than with repayment mortgages. Some high street lenders require at least 50% equity in the property although LTVs of 75% are available.  

As a result, wealthier borrowers typically have more flexibility with interest-only loans and repayment strategies. 

However, the most important issue for lenders is that there’s good proof of repayment strategy that will ensure the borrower has the means to pay back the loan at the end of the term. 

Nisha Vaidyaquotation mark
If you're looking to become a landlord and have a repayment strategy for your mortgage in place, an interest-only deal might be right for you to save on costs.
Nisha Vaidya, Mortgage Editor

Interest-only remortgage FAQs

Explore mortgage guides

Compare Our Best Buy to Let Mortgages

Compare buy to let mortgages and find the right buy to let mortgage to help you purchase a property to rent. Also find out how a buy to let mortgage works and about the criteria for getting one.

Read More
older couple with advisor on laptop

How to get a mortgage if you are an older borrower

Getting a mortgage can be more difficult when you get closer to retirement. Here is how to find one whether you want to move house or remortgage your current home.

Read More
business man at home on laptop

Compare Our Best Interest Only Mortgages August 2022

Learn all about interest-only mortgages, including whether you could get one and how to find the most suitable interest-only mortgage deal for you.

Read More
Thoughtful woman looking out of window

Compare Remortgage Deals August 2022

Switch to a better deal when you need to remortgage by comparing the rates and fees of these mortgages. Our comparison makes it easy to find the right remortgage loan for you.

Read More
Mortgage broker or direct deal?

Mortgage broker or direct deal

Here are all the advantages and disadvantages of using a mortgage broker vs applying for your mortgage direct. This will help you decide on the best way to find a mortgage.

Read More
How to get a remortgage?

How to get a remortgage

Getting a new mortgage deal could cut the interest you pay and save thousands of pounds. Here is how to remortgage to a better deal, avoid fees and reduce what you pay each month.

Read More

Why compare mortgages with

Comparing mortgages could help you save money. Our award-winning loan comparison service makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators to help you make life's most important decisions and take control of your money.

Proud to be award winning

We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.