Compare Interest-Only Mortgages

Interest only mortgages

		Mortgage Type Fixed: The interest rate is fixed for a certain period – usually 1 to 5 years. Tracker: The interest rate rises and falls with the Bank of England base rate. Standard: The interest rate rises and falls with the provider’s standard interest rate (SVR). Discount: The interest rate rises and falls with the provider’s standard variable rate but is set at a lower discounted rate for certain period. 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 The interest rate that your mortgage will revert to after any introductory rates have finished.	APR This is the mortgage’s Annual Percentage Rate: the interest rate that you will be charged on your mortgage including all charges such as arrangement fees (also referred to as Cost For Comparison).	Loan to value The percentage of a property’s value for which the mortgage can be used. Example: 75% loan to value = 25% deposit.	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 1.95% Discount LTV 60% Special Direct [Show Details]	Discount	1.99%	24	3.94%	3.80%	60%	£1499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	HSBC 2yr 2.24% Fixed LTV 60% Special Direct [Show Details]	Fixed	2.24%	31/05/2014	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. Minimum Deposit: 40% Max Loan: £500000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	NatWest 2yr BBR+1.85% LTV 60% Dir AdPt/Bus Ex/C no-ERC [Show Details]	Tracker	2.35%	31/03/2014	4.00%	4.00%	60%	£1499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 158 2907
	Available for existing NatWest customers only.
	Royal Bank of Scotland 2yr BBR+1.85% LTV 60% "Black Account" Ex/C Dir [Show Details]	Tracker	2.35%	31/03/2014	4.00%	3.90%	60%	£1499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
	Royal Bank of Scotland 2yr BBR+1.85% LTV 60% "Black Account" Ex/C No ERC [Show Details]	Tracker	2.35%	31/03/2014	4.00%	4.00%	60%	£1499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
	HSBC Lifetime BBR + 1.89% LTV 60% Special Direct [Show Details]	Tracker	2.39%	term	n/a	2.50%	60%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	NatWest 2yr BBR + 1.95% LTV 60% Direct [Show Details]	Tracker	2.45%	31/03/2014	4.00%	4.00%	60%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 158 2907
	NatWest 2yr BBR + 1.95% LTV 60% Direct Ex/B [Show Details]	Tracker	2.45%	31/03/2014	4.00%	3.90%	60%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Borrower: yes Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 158 2907
	Royal Bank of Scotland 2yr BBR + 1.95% LTV 60% Direct Ex/B [Show Details]	Tracker	2.45%	31/03/2014	4.00%	3.80%	60%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Borrower: yes Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Royal Bank of Scotland 2yr BBR + 1.95% Tracker LTV 60% [Show Details]	Tracker	2.45%	31/03/2014	4.00%	4.00%	60%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 068 7678
	HSBC Lifetime BBR + 1.99% LTV 60% Special Direct [Show Details]	Tracker	2.49%	term	n/a	2.50%	60%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	Post Office Ltd 2yr BBR + 1.99% Tracker LTV 65% [Show Details]	Tracker	2.49%	31/03/2014	4.49%	4.30%	65%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 35% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0121 270 3556
	HSBC Lifetime BBR + 2.09% LTV 70% Direct [Show Details]	Tracker	2.59%	term	n/a	2.70%	70%	£599	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 30% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	HSBC Lifetime BBR + 2.09% LTV 70% Ex/C Adv Dir [Show Details]	Tracker	2.59%	term	n/a	2.70%	70%	£399	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 30% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	Available for existing HSBC customers only.
	HSBC Lifetime BBR + 2.09% LTV 70% Ex/C Prem Dir [Show Details]	Tracker	2.59%	term	n/a	2.70%	70%	£299	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 30% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	Available for existing HSBC customers only.
	Post Office Ltd 2yr BBR + 2.09% Tracker LTV 75% [Show Details]	Tracker	2.59%	31/03/2014	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. Minimum Deposit: 25% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0121 270 3556
	NatWest 2yr BBR + 2.10% LTV 60% Direct Ex/B Main Bank A/C [Show Details]	Tracker	2.60%	31/03/2014	4.00%	3.80%	60%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Borrower: yes Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 158 2907
	Royal Bank of Scotland 2yr BBR + 2.10% LTV 60% Direct Ex/B Main A/C [Show Details]	Tracker	2.60%	31/03/2014	4.00%	3.80%	60%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Borrower: yes Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Post Office Ltd 2yr 2.73% Fixed BBR LTV 65% [Show Details]	Fixed	2.73%	31/03/2014	4.49%	4.30%	65%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 35% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0121 270 3556
	Royal Bank of Scotland 2yr BBR + 2.29% LTV 70% Direct Ex/B [Show Details]	Tracker	2.79%	31/03/2014	4.00%	3.90%	70%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Borrower: yes Minimum Deposit: 30% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Woolwich (Barclays) O Plan FM 2yr 2.84% Fxd BBR R/M C/B LTV 60% Lge Ln [Show Details]	Fixed	2.84%	31/05/2014	3.89%	4.00%	60%	£2499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% Max Loan: £2000000 First time buyer: no Homemover: no Remortgage: yes Call Direct 0845 070 1569
	Woolwich (Barclays) Openplan FM 2yr 2.84% Fixed BBR LTV 60% Lge Loan [Show Details]	Fixed	2.84%	31/05/2014	3.89%	4.00%	60%	£2499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% Max Loan: £2000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0845 070 1569
	Woolwich (Barclays) Openplan FM 2yr 2.84% Fxd BBR R/M LTV 60% Lge Loan [Show Details]	Fixed	2.84%	31/05/2014	3.89%	4.00%	60%	£2499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% Max Loan: £2000000 First time buyer: no Homemover: no Remortgage: yes Call Direct 0845 070 1569
	Santander UK plc 2yr BBR + 2.34% Tracker H/P C/B LTV 60% Direct [Show Details]	Tracker	2.84%	24 months	4.24%	4.10%	60%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: no Call Direct 0800 032 4610
	Santander UK plc 2yr BBR + 2.34% Tracker R/M C/B LTV 60% Direct [Show Details]	Tracker	2.84%	24 months	4.24%	4.10%	60%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: yes Call Direct 0800 032 4610
	Santander UK plc 2yr BBR + 2.34% Tracker R/M LTV 60% Direct [Show Details]	Tracker	2.84%	24 months	4.24%	4.10%	60%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: yes Call Direct 0800 032 4610
	NatWest 2yr 2.85% Fixed H/P LTV 60% Direct [Show Details]	Fixed	2.85%	31/03/2014	4.00%	4.10%	60%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: no Call Direct 0800 158 2907
	NatWest 2yr 2.85% Fxd R/M LTV 60% Direct [Show Details]	Fixed	2.85%	31/03/2014	4.00%	4.00%	60%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: yes Call Direct 0800 158 2907
	Post Office Ltd 2yr 2.85% Fixed BBR LTV 75% [Show Details]	Fixed	2.85%	31/03/2014	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. Minimum Deposit: 25% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0121 270 3556
	Royal Bank of Scotland 2yr 2.85% Fixed H/P LTV 60% Direct [Show Details]	Fixed	2.85%	31/03/2014	4.00%	4.10%	60%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: no Call Direct 0800 068 7678
	Royal Bank of Scotland 2yr 2.85% Fxd R/M LTV 60% Direct [Show Details]	Fixed	2.85%	31/03/2014	4.00%	4.00%	60%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: yes Call Direct 0800 068 7678
	NatWest 2yr BBR + 2.35% LTV 60% Direct Fee Free [Show Details]	Tracker	2.85%	31/03/2014	4.00%	4.00%	60%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 158 2907
	Royal Bank of Scotland 2yr BBR + 2.35% Tracker LTV 60% No Fee [Show Details]	Tracker	2.85%	31/03/2014	4.00%	4.00%	60%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 068 7678
	NatWest 2yr 2.89% Fxd LTV 60% Direct Ex/B [Show Details]	Fixed	2.89%	31/03/2014	4.00%	3.80%	60%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 158 2907
	Available for existing NatWest customers only.
	Royal Bank of Scotland 2yr 2.89% Fxd H/P LTV 60% "Main A/C" Ex/C Dir [Show Details]	Fixed	2.89%	31/03/2014	4.00%	4.00%	60%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 40% First time buyer: yes Homemover: yes Remortgage: no Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
	Royal Bank of Scotland 2yr 2.89% Fxd LTV 60% Ex/B Direct [Show Details]	Fixed	2.89%	31/03/2014	4.00%	3.90%	60%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
	Royal Bank of Scotland 2yr 2.89% Fxd R/M LTV 60% "Main A/C" Ex/C Dir [Show Details]	Fixed	2.89%	31/03/2014	4.00%	3.90%	60%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 40% First time buyer: no Homemover: no Remortgage: yes Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
	Santander UK plc 2yr 2.89% Fixed H/P C/B LTV 60% Direct [Show Details]	Fixed	2.89%	02/04/2014	4.24%	4.20%	60%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: no Call Direct 0800 032 4610
	HSBC Lifetime BBR + 2.39% LTV 70% Direct [Show Details]	Tracker	2.89%	term	n/a	2.90%	70%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 30% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	NatWest 2yr BBR + 2.39% LTV 75% Direct [Show Details]	Tracker	2.89%	31/03/2014	4.00%	4.00%	75%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 25% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 158 2907
	Royal Bank of Scotland 2yr BBR + 2.39% LTV 75% Direct Ex/B [Show Details]	Tracker	2.89%	31/03/2014	4.00%	3.90%	75%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Borrower: yes Minimum Deposit: 25% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Royal Bank of Scotland 2yr BBR + 2.39% Tracker LTV 75% [Show Details]	Tracker	2.89%	31/03/2014	4.00%	4.00%	75%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 25% First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 068 7678
	Post Office Ltd 3yr 2.95% Fixed BBR LTV 65% [Show Details]	Fixed	2.95%	31/03/2015	4.49%	4.30%	65%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 35% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0121 270 3556
	Royal Bank of Scotland 2yr BBR + 2.45% LTV 70% Direct Ex/B Main A/C [Show Details]	Tracker	2.95%	31/03/2014	4.00%	3.90%	70%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Borrower: yes Minimum Deposit: 30% First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	HSBC 2yr 2.99% Fixed LTV 70% Direct [Show Details]	Fixed	2.99%	31/05/2014	3.94%	3.90%	70%	£599	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 30% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	HSBC 2yr 2.99% Fxd LTV 70% Ex/C Advanced Direct [Show Details]	Fixed	2.99%	31/05/2014	3.94%	3.90%	70%	£399	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 30% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	Available for existing HSBC customers only.
	HSBC 2yr 2.99% Fxd LTV 70% Ex/C Premier Direct [Show Details]	Fixed	2.99%	31/05/2014	3.94%	3.90%	70%	£299	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: 30% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0800 077 4283
	Available for existing HSBC customers only.
	Post Office Ltd 2yr 2.99% Fixed BBR LTV 65% Fee Assist [Show Details]	Fixed	2.99%	31/03/2014	4.49%	4.30%	65%	£495	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 35% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0121 270 3556
	Post Office Ltd 3yr 2.99% Fixed BBR LTV 75% [Show Details]	Fixed	2.99%	31/03/2015	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. Minimum Deposit: 25% Max Loan: £1000000 First time buyer: yes Homemover: yes Remortgage: yes Call Direct 0121 270 3556
	Santander UK plc 2yr 2.99% Fixed R/M C/B LTV 60% Direct [Show Details]	Fixed	2.99%	02/04/2014	4.24%	4.30%	60%	£995	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Deposit: 40% Max Loan: £1000000 First time buyer: no Homemover: no Remortgage: yes Call Direct 0800 032 4610
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.

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