Interest Only Mortgage Advice
With access to the full mortgage market, we can offer extensive mortgage advice relating to interest only arrangements.
What Is An Interest Only Mortgage?
An interest only mortgage is where the payable monthly payments will cover the interest that is accrued on the loan. This then creates a scenario where the mortgage amount remains static unless overpayments are being made in addition to the contractual interest only payment.
Lenders will want to know the repayment strategy to enable the mortgage to be repaid at the end of the term. Typical examples of this are the sale of the mortgaged property, or the sale of another tangible asset, funds derived from an investment (such as a pension), or designated overpayments.
Is An Interest Only Mortgage The Best Route For Me?
It very much depends on an individuals own needs & preferences, as well as determining if opting for an interest only mortgage is best advice.
On a residential arrangement interest only is less accessible compared to a buy to let setup, as typically the latter is designed more from an investment standpoint, and as such lenders are generally more comfortable with the use of an interest only mortgage.
Residential has a more detailed approach from lenders, as they will consider items such as the strength and sustainability of the repayment vehicle, the loan to value, income & expenditure, and minimum equity levels, just to name a few. In essence, they want to ensure the taken mortgage is created with responsible lending in practice.
Still Have Questions?
If you cannot find an answer you are seeking, then simply click the button below, or call us at 0208 125 3100, to get in touch with one of our mortgage brokers.
Depending on your circumstances you may have a wide selection of mortgage companies willing to offer you the mortgage you desire. With access to thousands of mortgage deals, our experts will find you the most suitable deal.
Yes, we have whole of market access. As we are an independent brokerage, and not tied directly to a group of lenders, we can access the full mortgage market. This exposure allows us to scour the market for the best lending arrangements for our clients.
Lenders can vary significantly in what they are willing to offer when assessing affordability. However, our team of expert advisors will thoroughly assess the market to ascertain your maximum borrowing potential, and will fully guide you along the way.
Our specialist lending proposition encompasses all aspects of mortgage broking. Our team of experts are true professionals in areas such as expatriates, foreign currency, high net worth individuals, large loans, and complex buy to let, just to name a few. This spectrum of expertise is what sets us apart.
Do Rates Differ On Interest Only Mortgages?
The short answer is no, as majority of lenders that offer this setup will have the same rates whether the mortgage is on a capital & interest or interest only arrangement.
However, what can dictate the competitiveness of the rate is accessibility. For example, if the lender that is offering the headline rate does not offer interest only, then you’d find the rate would be higher in comparison on the basis of the lender that can consider the case.
Get in touch
We understand that every circumstance is different, and having a bespoke touch is essential in understanding a case. This openminded approach is what creates a professional standard that we always uphold.
Our team of bridging loan specialists are available to discuss your individual requirements, so simply complete the contact form and we’ll be in touch shortly.