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
1145 Total reviews
90%
4.81 Average rating
- 5★ ★ ★ ★ ★
Dave
I had the unfortunate experience of working with a very demanding and problematic lender new to both myself and JC. The total time to complete on this purchase was in excess of 30 weeks, but despite numerous issues and complications JC's communication and levels of professional commitment to driving the process forward never wavered. A massive thanks guys!
Posted - 5★ ★ ★ ★ ★
Elizabeth
Efficient straightforward and very helpful. All the stress of finding a suitable mortgage product was removed. Thank you!
Posted - 5★ ★ ★ ★ ★
Sarah
Nicola Jones and Cristian Lupu were helpful , friendly, efficient and pro-active in arranging the right finance deal for me. This is the second time I have used John Charcol and their customer service is excellent.
Posted - 5★ ★ ★ ★ ★
David
I went to John Charcol because I had issue getting mortgage for an off-plan assignment of contract. Sener Topal took the case and worked diligently. He was efficient, responsive and quick to the point. Not only he helped me secure the mortage, he also helped liasing with the developer to ensure all necessary assessments done in time. He did much more than just a mortage broker (in contrast my laid back lazy solicitor was just sitting around waiting things to happen). I would highly recommend Sener and the John Charcol!
Posted - 5★ ★ ★ ★ ★
Anonymous
Great availability of products, sound advice & superb client service. My thanks to Matt Daley & Louise Cheatle.
Posted - 5★ ★ ★ ★ ★
Charlie
This is my 2nd time where Steven Prior has sourced the right mortgage deal for me, after a fantastic experience 2 years ago. I would whole heartedly recommend Steven to my contacts and will continue to deal with him in the future. His manner is professional, is clearly very well informed and knowledgeable and was always readily available to speak either via email or on the phone.
Posted - 5★ ★ ★ ★ ★
Mercedes
An absolutely fantastic service provided by Penny Mathers and Fiona Allan from beginning to end; the whole process was effortless. Penny was very knowledgeable and highly professional with a good understanding of our needs. The process was extremely smooth right upon until completion day. Highly recommend John Charcoal Ltd
Posted - 5★ ★ ★ ★ ★
Michael
I have used them for many years and have always been happy with their service.
Posted - 5★ ★ ★ ★ ★
Anonymous
Rob Setter has been very professional,helpful and quick to reply to any queries.
Posted - 5★ ★ ★ ★ ★
Anonymous
The service provided by Matthew Daly is superb. Thoroughly professional, very knowledgefull and approachable and a very nice chap. The whole transaction was very smooth with good back up from his colleagues. Matthew found a good deal as expected and has also arranged finance for me previously. Fully recommended.
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