Mortgage Enquiries0344 346 3672
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
1209 Total reviews
90%
4.82 Average rating
- 5★ ★ ★ ★ ★
Anonymous
I have used John Charcol's services before and was more than happy to turn to them again for help. Erin and Hayley were my contacts and they kept me informed at all stages of the process; no need for me to do any chasing. I have recommended John Charcol in the past to friends and family, and will continue to do so. Keep up the good work!
Posted - 5★ ★ ★ ★ ★
Mark
We would like to say a massive thank you to Erin Hine, Hayley Sydes & Gemma Khan from John Charcoal. They have been so incredibly helpful, patient & professional in helping us with our 2nd Mortgage - they answered every one of the many many emails we sent them very quickly and kept us informed every step of the way. They are each a credit to their business and we cannot recommend them enough.
Posted - 5★ ★ ★ ★ ★
Mr T
Huge thanks to Tim Cobb and Marina DaLomba of John Charcol for arranging and finalising a very complex mortgage for us. Highly recommended.
Posted - 5★ ★ ★ ★ ★
Dr
Fantastic service. I have had experience using John Charcol over the 40 or so years and they have always proved very helpful and competitive. This time they excelled themselves - obtaining a mortgage from my own bank, where my wife & I are Premier customers, had who had previously rejected us for owning too many properties already & being retired. John Charcol used their experience and contacts to achieve what we independently could not. Service was polite, professional, timely and not pushy. Cannot recommend more strongly.
Posted - 5★ ★ ★ ★ ★
Anonymous
I have used John Charcol on several occasions over the years. They are very efficient and I have never managed to find a cheaper rate elsewhere.
Posted - 5★ ★ ★ ★ ★
Darren
Used John Charcol on many occassions and I will continue to use them in the future . Tom Allen is very personable, really efficient and gives great advice. Thanks Tom
Posted - 5★ ★ ★ ★ ★
Phil
Really efficient no nonsense advice and quickly organised
Posted - 5★ ★ ★ ★ ★
Anonymous
We are currently living and working abroad and renting out our property in London while we are away, which limited our options considerably. However John Charcol found a competitive product which matched our requirements.
Posted - 5★ ★ ★ ★ ★
Adam
Scott and molly were both very helpful in this process. Making it very straight forward and easy.
Posted - 5★ ★ ★ ★ ★
NB
Fantastic service provided by Hemel and Katy at John Charcol - from identifying a suitable product to closing out the required paperwork was a smooth experience.
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