Compare interest only mortgages

Find interest only mortgages that let you pay off the interest only and could reduce your repayments.

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1151 results found, sorted by affiliated products by lowest initial rate. How we order our comparisons. Commission earned affects the table's sort order.
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Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
Maximum LTV
60%
Initial rate
2.23% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.5% APRC
Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 10 year fixed remortgage
Maximum LTV
60%
Initial rate
2.23% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.5% APRC
Lloyds Bank 10 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 5 year fixed cashback remortgage for people with an existing current account
Maximum LTV
60%
Initial rate
2.27% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
Lloyds Bank 5 year fixed cashback remortgage for people with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 5 year fixed remortgage
Maximum LTV
60%
Initial rate
2.27% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
Lloyds Bank 5 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
Maximum LTV
75%
Initial rate
2.29% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.5% APRC
Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 10 year fixed remortgage
Maximum LTV
75%
Initial rate
2.29% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.5% APRC
Lloyds Bank 10 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 5 year fixed cashback remortgage for people with an existing current account
Maximum LTV
75%
Initial rate
2.3% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
Lloyds Bank 5 year fixed cashback remortgage for people with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 5 year fixed remortgage
Maximum LTV
75%
Initial rate
2.3% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
Lloyds Bank 5 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 5 year fixed remortgage
Maximum LTV
60%
Initial rate
2.31% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
Lloyds Bank 5 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 2 year fixed remortgage
Maximum LTV
60%
Initial rate
2.33% fixed until 31 Aug 2024
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.4% APRC
Lloyds Bank 2 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Aug 2023

- then 1.00% of amount paid, until 31 Aug 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 2 year fixed remortgage
Maximum LTV
75%
Initial rate
2.35% fixed until 31 Aug 2024
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.3% APRC
Lloyds Bank 2 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Aug 2023

- then 1.00% of amount paid, until 31 Aug 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 5 year fixed cashback remortgage for people with an existing current account
Maximum LTV
75%
Initial rate
2.36% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
Lloyds Bank 5 year fixed cashback remortgage for people with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 5 year fixed remortgage
Maximum LTV
75%
Initial rate
2.36% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
Lloyds Bank 5 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 2 year fixed remortgage
Maximum LTV
60%
Initial rate
2.38% fixed until 31 Aug 2024
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.4% APRC
Lloyds Bank 2 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Aug 2023

- then 1.00% of amount paid, until 31 Aug 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Yorkshire Building Society 2 year fixed
Maximum LTV
75%
Initial rate
2.45% fixed until 31 Jul 2024
Subsequent rate (SVR)
4.74% variable
Overall cost for comparison
4.0% APRC
Yorkshire Building Society 2 year fixed
The initial rate will be followed by a rate of 3.75% until 31 Jul 2027 (0.99% discount on SVR).
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion fee£1,495 with an option to add to the loan
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.50% of amount paid, before 31 Jul 2023

- then 1.50% of amount paid, until 31 Jul 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
Maximum LTV
60%
Initial rate
2.46% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.6% APRC
Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 10 year fixed remortgage
Maximum LTV
60%
Initial rate
2.46% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.6% APRC
Lloyds Bank 10 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Halifax 10 year fixed
Maximum LTV
60%
Initial rate
2.48% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.5% APRC
Halifax 10 year fixed
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£995 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Halifax 5 year fixed
Maximum LTV
60%
Initial rate
2.48% fixed until 31 Aug 2027
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.9% APRC
Halifax 5 year fixed
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£995 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Aug 2023

- then 4.00% of amount paid, until 31 Aug 2024

- then 3.00% of amount paid, until 31 Aug 2025

- then 2.00% of amount paid, until 31 Aug 2026

- then 1.00% of amount paid, until 31 Aug 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Lloyds Bank 2 year fixed remortgage
Maximum LTV
75%
Initial rate
2.48% fixed until 31 Aug 2024
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.4% APRC
Lloyds Bank 2 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Aug 2023

- then 1.00% of amount paid, until 31 Aug 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
Maximum LTV
75%
Initial rate
2.49% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.6% APRC
Lloyds Bank 10 year fixed cashback remortgage for people with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
Lloyds Bank 10 year fixed remortgage
Maximum LTV
75%
Initial rate
2.49% fixed until 31 Aug 2032
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.6% APRC
Lloyds Bank 10 year fixed remortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 6.00% of amount paid, before 31 Aug 2027

- then 5.00% of amount paid, until 31 Aug 2028

- then 4.00% of amount paid, until 31 Aug 2029

- then 3.00% of amount paid, until 31 Aug 2030

- then 2.00% of amount paid, until 31 Aug 2031

- then 1.00% of amount paid, until 31 Aug 2032

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Accepted
HSBC 5 year fixed for first time buyers with an existing current account
Maximum LTV
60%
Initial rate
2.51% fixed until 31 Jul 2027
Subsequent rate (SVR)
3.79% variable
Overall cost for comparison
3.6% APRC
HSBC 5 year fixed for first time buyers with an existing current account
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£1,499 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, in the first year

- 4.00% of amount paid, in the second year

- 3.00% of amount paid, in the third year

- 2.00% of amount paid, in the fourth year

- then 1.00% of amount paid, until 31 Jul 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Customer Typecurrent account
Existing Customer Only
First Time Buyers Only
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
HSBC 2 year fixed
Maximum LTV
60%
Initial rate
2.54% fixed until 31 Jul 2024
Subsequent rate (SVR)
3.79% variable
Overall cost for comparison
3.9% APRC
HSBC 2 year fixed
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£999 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- then 1.00% of amount paid, until 31 Jul 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
HSBC 2 year fixed for first time buyers
Maximum LTV
60%
Initial rate
2.54% fixed until 31 Jul 2024
Subsequent rate (SVR)
3.79% variable
Overall cost for comparison
3.9% APRC
HSBC 2 year fixed for first time buyers
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£999 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- then 1.00% of amount paid, until 31 Jul 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Overall representative example

Updated 16 May 2022
Based on borrowing£170,000 over 25 yearsThe overall cost of comparison4.26% APRC Representative
Initial rate2.72% fixed for 2 years (24 instalments of £380.60pm)Subsequent rate (SVR)4.43% variable for the remaining 23 years (276 instalments of £615.16pm)
Lender fee£604Total amount payable£348,917.76 inc. £178,917.76 in interest and a final payment of £170,000.00

What is an interest only mortgage?

An interest only mortgage or interest only remortgage lets you make monthly payments that only cover the interest on the loan.

Interest only mortgages come with lower monthly repayments than other mortgages. But, at the end of the term, you'll still owe the amount you borrowed - and you'll have to pay it back in full.

That's because your interest-only mortgage repayments don't go towards reducing the amount you owe. They just cover the interest charged on what you've borrowed.

Here's an example. If you take out a £180,000 interest only mortgage with an interest rate of 3.5%, the monthly repayments could be £525. But when the mortgage ends, you'll still owe £180,000.

Here's everything you need to know about interest only mortgages.

How do interest only mortgages work?

With interest only mortgages you'll need to find a way to pay off the balance at the end.

If you're a landlord, you might have a buy to let interest only mortgage (BTL). This is an interest only mortgage for a rental property. You could sell the property at the end of the mortgage term and use the money you make to pay off the mortgage.

But you might have an interest only residential mortgage for a property that's your home. If that's the case, you'll either need to save up or invest during the mortgage term. That way you'll be able to repay the balance when the mortgage ends.

You might be able to pay off your interest only mortgage using a lump sum of cash you've inherited. But you'll usually need to save up using either:

  • A savings account

  • An investment fund

  • Or via stocks and shares

Of course, you do still have the option to sell your home, but you'd need to find somewhere else to live. Alternatively, you could take out a new mortgage.

When you apply for an interest only mortgage, you'll need to tell the lender how you plan to pay off the balance.

How to pay off your interest only mortgage

It's very important that if you've already got an interest only mortgage, you have a plan in place so you can pay it off when the term ends.

Here are some examples of what your plan could involve:

  • You could switch your mortgage to a repayment mortgage and start paying off some of the balance.

  • You could make overpayments on your mortgage, as long as your mortgage conditions let you do so. You'd end up paying less interest and also paying off all or some of your balance. This mortgage overpayment calculator shows you how much you'd save in interest.

  • You could set up an investment plan, and use the capital to pay off your mortgage at the end of the term.

It's a good idea to make a plan now and take action, rather than wait until you're close to the end of your mortgage term.

Would I be better with a repayment mortgage?

Most property purchases are made using a repayment mortgage. With a repayment mortgage, your monthly repayments clear the balance of what you borrowed, as well as paying the interest. At the end, you're guaranteed to owe nothing.

It's the alternative to an interest only mortgage.

Should you get an interest only or repayment mortgage?

What are the best interest only mortgages?

Where possible you should aim to repay both the interest and the capital, the best interest only mortgages are the ones that are affordable and with low repayment charges. Interest only mortgages will charge higher interest rates than a standard repayment mortgage.

Are interest only mortgages cheaper than repayment mortgages?

Interest only mortgages are not cheaper than repayment mortgages overall, but they might have a lower monthly cost. You can work out how much you'd pay using an interest only mortgage calculator.

But over their whole term they'll cost more because interest only mortgage rates aren't always the lowest. Plus, you'll pay interest on the whole amount borrowed from start to finish, rather than pay interest on a gradually decreasing sum owed.

Repayment mortgages usually cost more each month, but less over the mortgage's term. You'll find it easier to get a low interest mortgage for repayment than you will to get an interest only mortgage.

Read this guide to interest only mortgages and repayment mortgages for a breakdown of how much each type costs and which will suit you better.

Are interest only mortgages a good idea?

There are definitely some benefits of interest only mortgage options.

The monthly payments are likely to be far lower. This means you'll have spare cash, which you could use to improve your home and increase its value.

With an interest-only BTL mortgage, it's common for a landlord to save their rent profits and put it towards paying off the mortgage at the end.

Are there any downsides to interest only mortgages?

Even with the very best interest only mortgage rates, an interest only mortgage can cost you more in the long run.

That's because you'll pay interest on the whole amount borrowed for the entire term. Whereas with a repayment mortgage, you'd owe progressively less, and you'd only pay interest on what you still owed.

Plus, you won't officially own your house, even when your mortgage ends.

There's also an element of risk if you're hoping your property will be worth enough to pay off the balance at the end. There are no guarantees when it comes to property prices.

You might find you're having to save hard throughout your mortgage term.

Plus, the strict criteria to get an interest only mortgage means not everybody is eligible to get one.

Can I get an interest only mortgage?

The truth is that interest only mortgage deals haven't been easy to get since the financial crisis in 2008. Lenders are now more cautious about offering interest only mortgages

There's only a handful of lenders who will offer interest only mortgages, UK wide. To get an interest only mortgage, you'll need to meet tough interest only mortgage criteria. This includes having a large deposit and a proper repayment plan in place for how you'll pay off the balance at the end of the term.

If you do manage to get an interest only mortgage, you'll probably find that your lender wants to check here and there that your repayment plan is on track.

However, when it comes to getting an interest only mortgage, buy to let customers are in luck. There are still lots of interest-only mortgages available to landlords. That's because the lenders have the security that the home can be sold at the end of the term.

Can I get an interest only mortgage if I have a bad credit rating?

It's hard for anyone to get an interest only mortgage. To get one with bad credit is even harder. You might like to think about getting something called a 'part and part mortgage'. That's when part of your mortgage is interest-only, and the other part is a repayment mortgage. It will make your monthly payments a bit cheaper, but at the same time you'll be paying off some of the balance. That means you'll have less to repay at the end and your interest payments will gradually decrease.

If you've got bad credit, you're more likely to qualify for this than you are for an interest only mortgage for the full amount.

How do I find the best interest only mortgage rates?

It's important to do a mortgage interest rates comparison and use an interest only mortgage payment calculator so you can get all the facts.

By using our interest only mortgage comparison at the top of this page you should be able to find the best mortgage interest rates, UK wide.

It includes all the interest only mortgage rates, UK wide, so you can find the one that suits you best.

Interest-only mortgage FAQs

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Last updated: 23 October, 2021

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