Interest only mortgage brokers
Interest only mortgages are popular because the monthly repayments are more affordable than repayment mortgages, but they are rarely offered by high street lenders any more.
That doesn’t mean you can’t get one. You just need to know where to look, and more importantly, how to apply. John Charcol is an experienced interest-only mortgage broker with the know-how to secure you a lower rate.
Why are interest only mortgages so hard to find?
Interest only mortgages do exactly what they say – pay off just the interest. At the end of the mortgage, you need to have a way of paying off the capital loan for the property. If you don’t have this repayment vehicle in place, your home may be repossessed, so there is risk for both borrower and lender.
Given the current low interest rates on savings and investments we are experiencing, lenders have stricter rules around who they will lend to on this basis and many simply won’t support this kind of mortgage any more.
How can John Charcol help with interest only mortgages?
As mortgage experts with years of experience, we have helped numerous clients to get interest only mortgages.
We know the smaller building societies and private banks that maybe prepared to offer interest only mortgages in the right circumstances and we’ll make a personal case for people we think are likely to be successful.
These are just some examples of the circumstances that might enable you to qualify for an interest only mortgage:
- You are looking for a mortgage of 50% of the value of the property and will pay off the capital when you sell the property. This can be more or less than 50% in some circumstances, depending on availability)
- You have a record of bonus-based income that you can use to pay off the capital in lump sums each year
- You have a limited period in mind, for example three years until you finish paying off the school fees, when you will revert to a repayment mortgage
- You are an older client who wishes to stay in a property for a defined period of time, with the value of the property to pay off the capital when you move on
To find out how we can help you to secure an interest only mortgage, call us on 0344 346 3672 or enquire now.
Need some advice?
Send us your details and we will help find the mortgage that's right for you:
Frequently asked questions
Why is an interest only mortgage less expensive?
Because as the name suggests, you are only paying off the interest each month. The critical issue is that you need to be able to show how you will pay the capital off at the end.
Do all lenders offer interest only mortgages?
Some high street lenders have either withdrawn these products or are reluctant to lend in these terms, but there are still lots of smaller building societies and banks that will lend on a case-by-case basis.
Can anyone get an interest only mortgage?
No. Most lenders perceive interest only mortgages as a more risky loan so have many criteria about who they will lend to. We take each one on a case-by-case basis.
What percentage loan to value can I apply for?
Typically you can fund up 50% of the property value with an interest only mortgage.
Is there a set time limit?
Not a set limit, but interest only mortgages are always for a defined period linked to how you will be repaying the capital.
Find an interest only mortgage
When you choose John Charcol to find you an interest-only mortgage, you can enjoy the following benefits:
- Independent We know where to find the best deals for people like you.
- Experienced We’ve been arranging mortgages for almost 40 years.
- Personal We’ll come to you and take as much pain out of the process as humanly possible.
- Expert Many of our clients don’t qualify for a standard mortgage. That’s where our expertise comes in.
- Flexible We're used to working with high net worth individuals who want flexible mortgages that give them best value.
- Fast We work quickly to make things happen in the timeframes you need.
- Accessible We’re real people available on the end of the phone or in person, as and when you need us.
What our customers say
John Charcol
0330 057 5173 £ Cutlers Exchange, 123 Houndsditch London EC3A 7BU
Excellent
1318 Total reviews
4.83 Average rating
- 5★ ★ ★ ★ ★
James
This mortgage would not have been possible with the JC team. They listened to and understood the individual circumstances (which presented a notable challenge) and delivered an amazing result. Perseverance and dedication were outstanding. Thank you!
Posted - 5★ ★ ★ ★ ★
Anonymous
Excellent service from both Sarah & Talwasa would recommend highly
Posted - 5★ ★ ★ ★ ★
Peter
Continued updates on progress and advice on procedures very clear
Posted - 5★ ★ ★ ★ ★
Rachel
Excellant service from this company, especially Christian Lupu and Joshua Oliphant. Everuthing is done via telephone and secure email, great for if you live a busy life!
Posted - 5★ ★ ★ ★ ★
Olivia
Randeep Sodhi, who dealt with my mortgage, was absolutely great. Very attentive and accommodating and found me a great deal. I do not hestitate to recommend Randeep Sodhi and also Amanda Allum (who was also very helpful in chasing up the solicitors) at John Charcol.
Posted - 5★ ★ ★ ★ ★
Bushgrove
Excellent service. Very informative and efficient.
Posted - 5★ ★ ★ ★ ★
Sophy
From the first appointment, my mortgage consultant Jessica Childs made the whole process easy. She worked extremely hard to get me a great mortgage, and when my changing financial circumstances complicated the whole thing, she was really resourceful in finding other options. I would definitely come back to John Charcol if I ever needed a mortgage again, and hope that Jessica was still working for the company.
Posted - 5★ ★ ★ ★ ★
Caroline
I have used John Charcol several times as they are so efficient and are able to access attractive rates. This time was no disappointment. I would thoroughly recommend them.
Posted - 5★ ★ ★ ★ ★
Iain
Hailey really knows the market and the availability products. Won’t go anywhere else for mortgage needs. Thanks again
Posted - 5★ ★ ★ ★ ★
Robin
Extremely impressed. Randeep was very proactive, attentive, accessible, professional. Complex situation handled very smoothly. As an expat, it can be challenging to find the right expertise, I feel compelled to go back to John Charcol as a first choice for all my needs.
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