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
1414 Total reviews
4.83 Average rating
- 5★ ★ ★ ★ ★
Rebekka
Swift, polite, honest, patient and genuine. Treated me like a valued customer.
Posted - 5★ ★ ★ ★ ★
Anonymous
Always customer focused and tried to find the best way forward when there were issues on the way, very good, thanks.
Posted - 5★ ★ ★ ★ ★
Molly
I instructed Penny Mathers at John Charcoal for my residential mortgage and she was absolutely brilliant. Very easily contactable, approachable and went above and beyond. I thoroughly recommend (and will recommend!)
Posted - 5★ ★ ★ ★ ★
Serena
John Charcol has been introduced to myself by my MD for re-mortgaging application. I am very happy with the service I received and the efficiency of the team. Penny has been absolutely amazing and knowledgeable throughout out the process. Kayleigh has been absolutely helpful too. Thank you guys, really appreciate it.
Posted - 5★ ★ ★ ★ ★
Busra
Sener Topal is a very professional, knowledgeable and helpful mortgage broker.
Posted - 5★ ★ ★ ★ ★
Sarfaraz
Jessica Mottram was great kept me updated from start to finish will definitely use again
Posted - 5★ ★ ★ ★ ★
Tony
The team at John Charcol did an incredible job who were Randeed Sodhi who was my first contact and then also Katie Paterson. Certain difficult factors were present but Randeep persevered to resolve it to the very end whilst Katie's invaluable assistant helped keep all parties involved in the loop. Their manner was professional with all aspects of the work from gathering all necessary documents to representing these to the bank. I will always be grateful for the team.
Posted - 5★ ★ ★ ★ ★
Anonymous
I'm very grateful to John Charcol for their help in getting me a mortgage while I was in something of an odd position, recently returned from years overseas with a limited financial history in the UK. I know Joshua pursued quite a few options to find me the right lender, and that he put a lot of work into convincing the one we eventually went with to accept unconventional documentation of my assets and income. There were periods where more timely communication and updates on the process would have been helpful, but I'm very happy with the result.
Posted - 5★ ★ ★ ★ ★
PB
This bridging experience was a pleasant surprise given what i have experienced previously. Tiara's recommendation and Hayley's assistance allowed for a trouble free and pain free process, 3 & 1/2 weeks from start to finish. Thank you to you both
Posted - 5★ ★ ★ ★ ★
Anonymous
Good service and communication throughout the process
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