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.
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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.
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What our customers say
John Charcol
0330 057 5173 £ Cutlers Exchange, 123 Houndsditch London EC3A 7BU
Excellent
1659 Total reviews
4.84 Average rating
- 5★ ★ ★ ★ ★
Dr
I heard of John Charcol from a friend. I didn't have much idea as this was the first time I was looking for mortgage advice. Adviser Adam was super helpful through out. He helped to find the deal suits my needs best. He was very patient with all my queries. Application phase went very smoothly and I got the offer in about 2 weeks. I have already got my keys last week! Here to say a big thank you to Adam and all other staffs helped me from John charcoal through out my purchase!
Posted - 5★ ★ ★ ★ ★
Anonymous
I wasn't sure if I could raise the financing I needed, two remortgages plus one new buy to let deal, Steven crunched the numbers, said it would work, put it all in place, it worked! Minimum fuss, maximum great service.
Posted - 5★ ★ ★ ★ ★
Anonymous
Very helpful no matter how stupid the question may have been. I cant fault the service provided. Very professional company and good value for money. I for one would not use any other company on future purchases
Posted - 5★ ★ ★ ★ ★
Gareth
We have had a challenging mortgage process, but Fiona Allen went way 'above and beyond' getting it done and completed on time. The rate was really competitive, but more than that, Fiona's persistence, patience, and generally really helpful approach just made a fraught process much more bearable. Thank you so much!
Posted - 5★ ★ ★ ★ ★
Mrs M
Sabbi explained the whole process in simple terminology and explained what would be happening. He went above and beyond to find me the best rates and kept me informed of what was happening. He worked out of hours to call me when I couldn't take calls during my work time. What a star :)
Posted - 5★ ★ ★ ★ ★
LT
We have used John Charcol since we bought our first property in 2009. They provide an excellent, no hassle service and Sener Topal who is our advisor is excellent at providing all the information, ensuring everything runs to time and provides clarity at all levels. Would highly recommend!
Posted - 5★ ★ ★ ★ ★
Godfrey
A big thank you to Sophie, who found us a great deal / product and Cristian for providing timely updates. We could not say thank you enough for all your help and a making the process absolutely stress free.
Posted - 5★ ★ ★ ★ ★
Anonymous
Excellent attentive service with great knowledge
Posted - 5★ ★ ★ ★ ★
Anonymous
Made the process so much easier for us! It was a complex mortgage case and we didn't really know where to start - Nicole still helped us find a value for money mortgage that worked for us both. She kept us updated throughout the process and made what is a very stressful time a lot less stressful!
Posted - 4★ ★ ★ ★ ★
Anonymous
We were very happy with Razz at John Charcol during our remortgage. He was very professional, answered our queries promptly and was understanding when we had questions.
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