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
1085 Total reviews
90%
4.81 Average rating
- 5★ ★ ★ ★ ★
Gerry
Penny Mathers and her team have been superb from start to finish. From our very first consultative meeting with her through to completion she has devoted significant time in the day (and evening) to talking to us either in person or on the phone at every stage of the process. In addition to the work she carried out behind the scenes getting us the best deal, she has coordinated the various stages of the project with colleagues both within and beyond JC and we have felt in very safe hands throughout the process. Jenny (my wife) and I would thoroughly recommend Penny and her team (and indeed this is the second major project we have carried out with JC over the last few years. Many thanks to everyone at that company.
Posted - 5★ ★ ★ ★ ★
Darren
I have dealt with other mortgage brokers in the past, but nothing like the quality of service I received from James and Katie.
Posted - 5★ ★ ★ ★ ★
Bob
Very capable, knowledgeable and professional People. My adviser kept trying until a lender accepted in principle and made offer
Posted - 5★ ★ ★ ★ ★
Mr cross
Jordan and Molly have helped us in anyway they could. Always there if we needed anything and very quick to respond. They have answered any question we have asked and have always kept us in the picture. Couldn't of asked anything else. Thank you. I would recommend John Charcol to anyone especially if Jordan and Molly are helping.
Posted - 5★ ★ ★ ★ ★
LJC
This is the second time I have used a John Charcol broker and again I was very pleased with the service. Mandeep Rai provided us with excellent advice on the best deal and ensured the process was as smooth as possible.
Posted - 5★ ★ ★ ★ ★
Mr Craig
Outstanding Service. As first time Buyers we were particularly nervous but this was all put to rest by our Broker. He walked us through the entire process to give us a level of understanding that was void of all jargon surrounding the huge financial commitment Mortgages demand. He met all deadlines he set for us regarding legal documentation being sent out or telephones to be made. John Charcoal will be our first point of call for any future dealings our Mortgage requires. Our Broker was a gentleman by the name of Hailey Kow and he was professional, honest and polite. I extend a great thanks for all services provided by John Charcol.
Posted - 5★ ★ ★ ★ ★
Stephen
Sergio and Sophia were a pleasure to deal with. Always keeping me up to date with my mortgages progress. Thank you Stevie
Posted - 5★ ★ ★ ★ ★
Anonymous
They were brilliant - can’t thank Stephen enough, he was great!
Posted - 5★ ★ ★ ★ ★
Philip
Everyone involved was excellent from Harris in obtaining the mortgage to Iain and a real shout out for Ann who helped move the transaction to a quicker completion and managed to manage the lawyers concerned who were a bit tardy. Being a lawyer myself I was really struck at how good the service delivery was , indeed it surpassed my expectations. I will recommend John Charcol in the future, it is rare to get a team of people in different offices where their is no weak link. Indeed the service was seamless,. Also the mortgage I obtained was one other brokers said was not possible. So they really do have the products available which others may not have.
Posted - 5★ ★ ★ ★ ★
Roger
Reena and her colleagues kept us informed of the progress of our application throughout the process even letting us know when there would be no updates for a few days. This really takes out any worry and stress from the whole business of applying for a mortgage. We were never left wondering what was happening. The people we dealt with were helpful and professional but also very friendly and human.
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