Compare Interest-Only Mortgages
With each mortgage payment only paying off interest, for many borrowers interest-only mortgages provide a cheaper method of house purchase. See below for the latest rates on interest-only mortgages from the UK’s leading lenders.
Popular Mortgages
Interest only mortgages
| Mortgage Type Buy to Let: For landlords purchasing a property for letting. | Initial Rate The introductory rate of interest that you will pay for a certain period of time depending on the mortgage type and term. | Initial Term The length of time that the initial interest rate applies to the mortgage. | Final Rate Also referred to as Subsequent Rate - the interest rate that your mortgage will revert to after any introductory rates have finished. | Cost For Comparison This is the mortgage’s Annual Percentage Rate (APR): the interest rate that you will be charged on your mortgage including all charges such as arrangement fees. | Loan to value The percentage of a property’s value for which the mortgage can be used. | Fee to Apply This is the fee that must be paid to the lender when you take out the mortgage. It can be applied to the loan or paid separately. | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||
![]() | HSBC 2yr 2.19% Discount LTV 60% Special Direct + More Details | Discount | 1.75% | 24 | 3.94% | 3.80% | 60% | £1999 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC 2yr 1.89% Fixed LTV 60% Special Direct + More Details | Fixed | 1.89% | 31/08/2015 | 3.94% | 3.80% | 60% | £1999 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.29% Fixed H/P C/B LTV 60% + More Details | Fixed | 2.29% | 02/07/2015 | 4.74% | 4.40% | 60% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.29% Fixed R/M C/B LTV 60% + More Details | Fixed | 2.29% | 02/07/2015 | 4.74% | 4.30% | 60% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Post Office Ltd 2yr 2.35% Fixed BBR LTV 60% + More Details | Fixed | 2.35% | 31/05/2015 | 4.49% | 4.30% | 60% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | HSBC Lifetime BBR + 1.88% LTV 60% Special Direct + More Details | Tracker | 2.38% | term | n/a | 2.50% | 60% | £1499 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC 2yr 1.55% Discount LTV 60% Special Direct + More Details | Discount | 2.39% | 24 | 3.94% | 3.80% | 60% | £499 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.39% Fixed H/P C/B LTV 70% Direct Ex/C + More Details | Fixed | 2.39% | 02/07/2015 | 4.74% | 4.50% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.39% Fixed R/M C/B LTV 70% Direct Ex/C + More Details | Fixed | 2.39% | 02/07/2015 | 4.74% | 4.40% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.39% Fixed R/M LTV 70% Direct Ex/C + More Details | Fixed | 2.39% | 02/07/2015 | 4.74% | 4.40% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.44% Fixed H/P C/B LTV 70% + More Details | Fixed | 2.44% | 02/07/2015 | 4.74% | 4.50% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.44% Fixed R/M C/B LTV 70% + More Details | Fixed | 2.44% | 02/07/2015 | 4.74% | 4.40% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr BBR + 1.94% H/P C/B LTV 70% + More Details | Tracker | 2.44% | 24 months | 4.74% | 4.50% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr BBR + 1.94% R/M C/B LTV 70% + More Details | Tracker | 2.44% | 24 months | 4.74% | 4.40% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Post Office Ltd 3yr 2.45% Fixed BBR LTV 60% + More Details | Fixed | 2.45% | 31/05/2016 | 4.49% | 4.20% | 60% | £1495 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | HSBC 5yr 2.49% Fixed LTV 60% Special Direct + More Details | Fixed | 2.49% | 31/08/2018 | 3.94% | 3.60% | 60% | £1999 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Post Office Ltd 2yr 2.55% Fixed BBR LTV 75% + More Details | Fixed | 2.55% | 31/05/2015 | 4.49% | 4.30% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | HSBC 2yr 2.59% Fixed LTV 60% Fee Free Special + More Details | Fixed | 2.59% | 31/08/2015 | 3.94% | 3.80% | 60% | No Fee | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 3yr 2.59% Fixed H/P C/B LTV 70% + More Details | Fixed | 2.59% | 02/07/2016 | 4.74% | 4.30% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 3yr 2.59% Fixed R/M C/B LTV 70% + More Details | Fixed | 2.59% | 02/07/2016 | 4.74% | 4.40% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 3yr 2.59% Fixed R/M LTV 70% + More Details | Fixed | 2.59% | 02/07/2016 | 4.74% | 4.40% | 70% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Post Office Ltd 5yr 2.63% Fixed BBR LTV 60% + More Details | Fixed | 2.63% | 31/05/2018 | 4.49% | 3.90% | 60% | £1495 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | Post Office Ltd 3yr 2.68% Fixed BBR LTV 75% + More Details | Fixed | 2.68% | 31/05/2016 | 4.49% | 4.20% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | HSBC 2yr 2.69% Fixed LTV 70% Direct + More Details | Fixed | 2.69% | 31/08/2015 | 3.94% | 3.80% | 70% | £599 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC 2yr 2.69% Fixed LTV 70% Ex/C Advance Direct + More Details | Fixed | 2.69% | 31/08/2015 | 3.94% | 3.80% | 70% | £399 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC 2yr 2.69% Fixed LTV 70% Ex/C Premier Direct + More Details | Fixed | 2.69% | 31/08/2015 | 3.94% | 3.80% | 70% | £299 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.69% Fixed H/P C/B Ex/B LTV 75% + More Details | Fixed | 2.69% | 02/07/2015 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.69% Fixed H/P C/B LTV 75% Direct Ex/C + More Details | Fixed | 2.69% | 02/07/2015 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.69% Fixed R/M C/B LTV 75% Direct Ex/C + More Details | Fixed | 2.69% | 02/07/2015 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.69% Fixed R/M LTV 75% Direct Ex/C + More Details | Fixed | 2.69% | 02/07/2015 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC Lifetime BBR + 2.19% LTV 70% Direct + More Details | Tracker | 2.69% | term | n/a | 2.80% | 70% | £599 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC Lifetime BBR + 2.19% LTV 70% Ex/C Adv Direct + More Details | Tracker | 2.69% | term | n/a | 2.80% | 70% | £399 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC Lifetime BBR + 2.19% LTV 70% Ex/C Prem Direct + More Details | Tracker | 2.69% | term | n/a | 2.80% | 70% | £299 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC Lifetime BBR+2.19% LTV 60% Fee Free Special Direct + More Details | Tracker | 2.69% | term | n/a | 2.70% | 60% | No Fee | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr BBR + 2.19% H/P C/B Ex/B LTV 75% + More Details | Tracker | 2.69% | 24 months | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.74% Fixed H/P C/B LTV 75% + More Details | Fixed | 2.74% | 02/07/2015 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.74% Fixed R/M C/B LTV 75% + More Details | Fixed | 2.74% | 02/07/2015 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.74% Fixed R/M LTV 75% + More Details | Fixed | 2.74% | 02/07/2015 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr BBR + 2.24% H/P C/B LTV 75% + More Details | Tracker | 2.74% | 24 months | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr BBR + 2.24% R/M C/B LTV 75% + More Details | Tracker | 2.74% | 24 months | 4.74% | 4.60% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | The Mortgage Works 2yr 2.74% Fixed BTL LTV 65% + More Details | Buy To Let | 2.74% | 24 Months | 4.99% | 5.10% | 65% | £5250 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | Post Office Ltd 5yr 2.89% Fixed BBR LTV 75% + More Details | Fixed | 2.89% | 31/05/2018 | 4.49% | 4.00% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | Post Office Ltd 2yr BBR + 2.39% LTV 75% + More Details | Tracker | 2.89% | 31/05/2015 | 4.49% | 4.40% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | Santander UK plc 3yr 2.94% Fixed H/P C/B Ex/B LTV 75% + More Details | Fixed | 2.94% | 02/07/2016 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC 2yr 2.99% Fixed LTV 70% Fee Free Direct + More Details | Fixed | 2.99% | 31/08/2015 | 3.94% | 3.80% | 70% | No Fee | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | HSBC 5yr 2.99% Fixed LTV 60% Fee Free Special + More Details | Fixed | 2.99% | 31/08/2018 | 3.94% | 3.60% | 60% | No Fee | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Post Office Ltd 2yr 2.99% Fixed BBR LTV 75% Fee Free + Incentives + More Details | Fixed | 2.99% | 31/05/2015 | 4.49% | 4.30% | 75% | No Fee | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
| ||||||||||
![]() | Santander UK plc 2yr 2.99% Fixed H/P C/B LTV 70% + More Details | Fixed | 2.99% | 02/07/2015 | 4.74% | 4.60% | 70% | No Fee | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 2yr 2.99% Fixed R/M C/B LTV 70% + More Details | Fixed | 2.99% | 02/07/2015 | 4.74% | 4.40% | 70% | No Fee | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
![]() | Santander UK plc 3yr 2.99% Fixed H/P C/B LTV 75% + More Details | Fixed | 2.99% | 02/07/2016 | 4.74% | 4.50% | 75% | £995 | MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria.
Call Direct 0800 | ||||||||||
| YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. | |||||||||||||||||||
Interest only mortgages explained
If you're looking to get a head start on the housing ladder, or keep your costs low for a while, an interest only deal on your mortgage could be a very favourable arrangement. Instead of paying off a small chunk of your total debt each month, your costs will be limited to only the interest that has been accrued at that point. This could see your monthly outgoings reduced dramatically, especially when lending rates are low.
Typically, the interest only period will last from one to five years, during which time you'll be on a fixed or tracker interest rate, but you can sometimes find one for the entire term.
There are a number of reasons why it might be the best option. It could be that you are facing other expenses, such as starting your own business or saving for a life pursuit. Perhaps you can't be certain that you will be able to sustain your usual level of income for a time or maybe you have a found a place where your money can work harder for you than by paying off your home loan.
It does mean, of course, that by the end of the interest only period you will still owe the lender the same amount that you did to begin with. And if you reach the end of the mortgage and don't have other means to cover your shortfall, you could risk having your home repossessed. As such, you shouldn't look to rely on things like property prices going up or an uncertain windfall as justification for an interest only mortgage.
There is also a possibility that you could fall into negative equity with an interest only mortgage, owing more money than your house is worth, if the market slumps. Consider your options carefully.
Learn more about different types of mortgage with Know Your Money's guide.
Products by merchant
Aldermore Mortgages
BM Solutions Mortgages
Buckinghamshire Building Society Mortgages
Halifax mortgages
HSBC Mortgages
Kensington Mortgages
Kent Reliance Mortgages
NatWest Mortgages
Post Office Mortgages
RBS Mortgages
Saffron Building Society Mortgages
Santander Mortgages
The Mortgage Works Mortgages
Virgin Money Mortgages
Yorkshire Building Society Mortgages
Mortgages Guides
- Types of mortgage
- First time buyers
- Fixed vs tracker
- How to pay off your mortgage early
- Offset mortgages
- Remortgaging
- Buy to let mortgages
- Self-build mortgages
- The self-employed mortgage market
- Interest-only mortgages
- Mortgage lender roundup
- How to sell your house online
- How to beat rising mortgage rates
- Getting on to the property ladder
- Banks vs building societies
- What happens when your house is undervalued?
Mortgage Calculators
- How much can I borrow?
- How much will it cost?
- What will happen if interest rates rise or fall?
- How much can I borrow on a buy to let mortgage?
- How much rent should I charge?
- Can I change my mortgage lender if I have early repayment charges?
- Effects of making overpayments
- Will my endowment repay my whole mortgage?
- Stamp duty calculator
- All mortgage calculators





Follow us on Facebook