Mortgage Enquiries0344 346 3672
Interest only mortgages – are they still available?
Can you still get interest only mortgages?
Interest only mortgages are popular because the monthly repayments are more affordable than repayment mortgages, but they are seldom offered by the big 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 expert in helping clients to secure interest only mortgages.
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.
Why John Charcol?
- 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
975 Total reviews
90%
4.81 Average rating
- 5★ ★ ★ ★ ★
Wattie
This is the second time I have used John Charcol to re-mortgage and each time the process has been as smooth as possible. After the initial paperwork had been collated and sent to them they arranged the dissemination of these documents and everything progressed to a very satisfactory conclusion. Probably be back in three years time.
Posted - 5★ ★ ★ ★ ★
Anonymous
Sener Topal has been reliable, clear, efficient and helpful explaining everything in terms that I understood, without ever being patronising. He seemed always available even during unsociable hours throughout the mortgage process. I'm extremely grateful for the level of support I received. I have no hesitation in recommending Sener and this service.
Posted - 5★ ★ ★ ★ ★
Anonymous
Sarah Norman finds good deals even in difficult situations involving expats making it possible to achieve what we wanted.
Posted - 5★ ★ ★ ★ ★
Nigel
Have helped me with a development loan and remortgage on a complex new build - great quality responses in a timely manner from everyone on the John Charcol team!
Posted - 5★ ★ ★ ★ ★
Anonymous
Very cooperative and helpful throughout the whole process. I would thoroughly recommend.
Posted - 5★ ★ ★ ★ ★
Raymond
Sener was always helpful, pleasent and profesenal.
Posted - 5★ ★ ★ ★ ★
Mohammed
Extremely helpful staff in all respects from telephone calls to finding a very good deal with lowest interest mortgages
Posted - 5★ ★ ★ ★ ★
Douglas
For the excellent, profesional and seamless way that Sarita Varma successfully arranged a remortgage for our property from first contact to completion. Please see following the e-mail sent to Sarita on completion of the re-mortgage:- Dear Sarita, Thank you for your confirmation of completion, and we wish to thank you so very much for the excellent service you have give us in the whole process of securing this re-mortgage. I can only say how much of a pleasure it has been to experience your professionalism and expertise throughout the process. I would really hope that you will be able to assist us to secure a more attractive deal from the Ipswich BS prior to the current fixed rate expiring. Please feel fee to make contact at the appropriate time when this will be applicable. I confirm as you request that I am happy for you to take the outstanding client fee of £350. Once again, thank you for everything you have done for us over the past few months, it has been a pleasure to have had the benefit of your services. With our best regards, Doug & Susan
Posted - 5★ ★ ★ ★ ★
Pat
A big thank you to Kathryn and Hayley for all your hard work. They couldn't be more helpful and made life very easy for me. From start to finish very professional and I would definitely recommend them.
Posted - 5★ ★ ★ ★ ★
Martin
I have nothing but full praise and admiration and a huge thank you to John Charcol. From my initial ‘general enquiry’ phone call through to an email confirming completion of the house purchase the team at John Charcol have kept me fully informed with the progress of my mortgage application every step of the way. In particular a huge thank you to Reena Ved (London office) for swiftly and very efficiently processing and submitting my application and to Katie Paterson (Southampton office) for being very efficient and keeping me frequently up to date....Full marks and thank you to John Charcol, I thoroughly recommend them!
Posted
