Interest Only Mortgages

Need a deal which keeps monthly payments at their lowest?

£*

Mortgage Enquiries

£*

Mortgages Accepted

Buy a home with lower monthly payments

Make no repayments on your borrowing, only monthly interest charges. Is this the option for you? Ask our team today.

Why Choose MortgageKey for Interest Only Mortgages

We know the market

Our team’s knowledge of the interest only mortgage market, and excellent relationships with lenders, ensure you get the best offers.

Thousands of deals considered

We search and compare thousands of interest only mortgage deals to tailor a deal which is best suited to your current needs.

We’re completely independent

We’ve no tie-ins with certain lenders. As we’re fully independent and unbiased our focus is solely on finding the best option for you.

Pay nothing until completion

We don’t ask for any payment until we've found the right deal for you and your mortgage deal is complete.

Award-winning mortgage and loans experts – ready to help you today

Our team of specialists will guide you through the process of securing a mortgage, buying a home or taking out a loan – finding the very best deals for you and your family.

Mortgage & Loan Guides

Read our experts’ latest advice on a wide range of mortgage options to the tax implications of buying properties to let.

Find out more

Infographics

Making mortgages and loans simpler to understand is our key skill, and our infographics do just that!

Find out more

Hear from our Clients

Don’t just take our word for it, hear from our happy clients who we have helped through the mortgages and loans process.

Find out more

Interest Only Mortgages – Your Questions Answered

Interest Only Mortages can be an ideal option for those looking to lower their monthly payments, thereby giving them more cash to put to other use. 
 

How do Interest Only and Repayment Mortgages differ?

An interest only mortgage is exactly that as you only pay the interest rate on the amount you borrow from month to month until the end of your mortgage term.

However, you will still owe the original amount when your term has ended.

A repayment mortgage means you pay back an amount of what you've borrowed plus interest each month.

If you continue to make all of your payments, your debt will be settled at the end of your mortgage term.

Why do people choose Interest Only Mortgages?

The key reason most people choose this option is to lower their monthly payments, thereby giving them more cash to put to other use. To choose this option, lenders are likely to prefer you to have a large deposit.

With an interest only mortgage, if you borrow £250,000, over 25 years, on a 3% APR (Annual Percentage Rate) you would pay back £625 each month.

On a repayment mortgage, you could assume that you would pay around double that amount each month. Also, at the end of your interest only mortgage, you’d still owe the amount initially borrowed.

How do I pay off an Interest Only Mortgage?

Before you can acquire an interest only mortgage, your lender will want evidence of an approved repayment plan, for when your term comes to an end.

The simplest way can be to downsize by selling your home and moving to a cheaper property. The proceeds from the sale can then be used to pay off the outstanding mortgage balance. Depending on your lender, you may be also be able to include ISAs and stocks as part of your final payment.

Why choose MortgageKey for an Interest Only Mortgage?

Our team of award winning industry experts are dedicated to finding the right mortgage deal for you, from a lender you can trust. Our team will search through thousands of mortgage products and advise on what we feel is the best option for you given your personal circumstances and finances. We aim to make the process as seamless, straightforward as stress-free as possible, at all times.

What our clients are saying

  • Zoe and Sally were both really professional but friendly. They are a credit to your company.
    Iain Pay
  • World class service from Day 1 to completion. Highly recommended. In particular the service from Georgia Hardcastle and Olivia Russell was fantastic -...
    Paul Hennessy
  • Great service from start to finish and good terms too. Hoping the solicitors are as good now completing the process.
    Paul H
  • Great team did everything spotlessly and didn’t have to be chased up
    Dale Sutherland
  • Excellent service and trusted help So efficient
    Mrs Diane Brown
  • Very efficient service from start to finish. Communication was exceptional and was always informed and guided every step of the way
    Michael Newbery
  • 5 Star Service
    John Kleinman
  • They have been so helpful every step of the way they have always been quick to rely to every email I’ve sent them. And help me get a decision in pri...
    Mr Terry Mcdonald
  • Quick and efficient service.
    Nic Phipps
  • Very helpful assistant. Straight swap and terms I was looking for, saved a few quid a month
    Bob hope
  • Great fast and friendly service
    Neil
  • I have been dealing with Georgia Hardcastle at Mortgage Key, she is so helpful and have explained everything to me. I am a first time buyer and I was ...
    Pedro Amaral
  • Extremely professional service and courteous staff.
    Mr. Michael Rundle-Brown
  • Mortgagekey are an excellent mortgage broker service. Secured a mortgage with a high street lender within 4 weeks from DIP to full offer. Our case was...
    A&C
  • Brilliant service, can’t fault
    Aimi Buchanan
  • My broker Rory was able to get me a mortgage where others had failed.A credit to the company.
    John Wilkinson
  • We recently used Mortgage Key. Everything was straight forward and done quickly, from the initial quote to receiving the mortgage offer we were kept...
    customer
  • A really good service, Quick and efficient, no stress at all. Knowledgeable staff, who were a pleasure to deal with. I would recommend them and defini...
    philippa Wall
  • Very professional and friendly approach. They managed to find a mortgage which matched all our requirements. Great service! Thanks a lot!
    MJ
  • Great service from the beginning of the process.
    Bruno Cabral

Trusted by our clients

Ready to talk? Speak to an expert today: 0800 077 8980