Interest Only
Overview
With Standard Interest Only, you pay just the interest each month, so your payments stay lower.
You choose how long the mortgage lasts, up to 40 years, and you repay what you borrowed at the end.
It's different from a Retirement Interest Only mortgage, which has no end date.
It could suit you if you’d like a mortgage that can help with:
Buying your next home
Remortgaging, or moving your mortgage to us
Paying for home improvements or adaptions
Opening the bank of mum & dad to help your children or loved ones buy a home
Staying in your home for a while before you downsize
Planning ahead for inheritance tax
Interest only keeps your monthly payments lower, so we want to be sure you have a clear plan for repaying the loan at the end. Get that right and the rest is simple.
Head of Underwriting
Up to 40 years
You choose how long the mortgage lasts
Ages 40+
Whether you're working or retired
Borrow up to 75%
of your home's value, known as loan to value, or LTV. Subject to our lending criteria
Is it right for me?
For all the details about our Standard Interest Only mortgage, use our handy FAQs below
Overview
Lower monthly payments with a clear plan for the end of the term. Interest Only is available for clients aged 40+, working or retired, on terms up to 40 years.
Your client pays the interest each month and chooses the term, up to 40 years. Unlike a Retirement Interest Only mortgage, it has a set end date, when the balance is repaid.
Your clients need enough equity in the property to meet our minimum equity requirements. You can check the figure with our minimum equity finder.Overview
With Standard Interest Only, you pay just the interest each month, so your payments stay lower.
You choose how long the mortgage lasts, up to 40 years, and you repay what you borrowed at the end.
It's different from a Retirement Interest Only mortgage, which has no end date.
It could suit you if you’d like a mortgage that can help with:
- Buying your next home
- Remortgaging, or moving your mortgage to us
- Paying for home improvements or adaptions
- Opening the bank of mum & dad to help your children or loved ones buy a home
- Staying in your home for a while before you downsize
- Planning ahead for inheritance tax
How it works
1. You borrow what you need
Choose how much to borrow and agree a term that suits you.2. You pay the interest each month
Your monthly payments only cover the interest, so they're lower than a repayment mortgage. The amount you borrowed stays the same throughout the term.3. You repay the loan at the end
When the term ends, you repay the full amount you borrowed in one go, using the repayment plan you agreed at the start, such as selling a property, savings or investments.4. We check it's right for you
We'll look at whether the monthly payments are affordable for you, and that your plan for repaying the loan at the end is realistic.Keeping enough equity
Equity is the part of your home's value you own outright. With interest only, you need to keep a minimum amount of equity, and the figure depends on where in the UK you live. Your adviser can tell you the amount.
Key facts
- Minimum age: 40
- Minimum loan amount: £20,000
- Maximum loan amount: £2.5 million
- Maximum loan to value: 75%
- Maximum term: 40 years
- Affordability assessment and repayment plan required
6.73%
2-year fixed
from rate
6.70%
5-year fixed
from rate
6.89%
10-year fixed
from rate
Explore other mortgages
If Interest Only might not be right for you, we have lots of other options that could work
See all solutionsRelated products
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