skip to main content
Request a call back

Leave your contact details and one of our expert advisers will call you back shortly.

You can also complete our mortgage questionnaire for a more accurate initial response.

Please note, by submitting this information you have given your agreement to receive verbal contact from us to discuss your mortgage requirements.

Menu
Archives

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

show more show less

More of the banks and building societies provide interest-only mortgages and the cheapest deals are priced just over 1%. 

While many of the largest lenders like HSBC, Santander and Halifax supply interest-only mortgages at incredibly cheap rates, they have very different acceptance criteria. Some require borrowers to earn over £100,000 to qualify, while others do not have a minimum income, and some want a certain amount of equity in the property.  

Aaron Strutt, product director at Trinity Financial, says: "Many borrowers do not realise there are so many lenders offering interest-only mortgages and they are more widely available. If you do take an interest-only mortgage it is vital borrower make overpayments or have a plan to ensure the mortgage is repaid by the end of the term.  

"Santander for Intermediaries lowest interest-only mortgage is fixed for two-year at 1.25%, and it has a £999 arrangement fee. Applicants would need a 40% deposit to qualify the bank supplies full interest-only or part interest-only and part capital-repayment." 

To access Santander’s interest-only mortgages when an applicant(s) combined gross income is less than £100,000, the maximum income multiple is 4.45 times salary. If any part of the mortgage is on an interest-only basis, the maximum loan to value is 85%. 

For an applicant with a gross income of £250,000 or less, any lending over 50% loan-to-value must be on a capital and interest basis. Providing at least one applicant has a gross income of more than £250,000, the policy gets more generous, so any lending over 75% loan-to-value must be on a capital and interest basis. 

Coventry for Intermediaries is offering no minimum income interest-only mortgages, but the client will need to have a sufficient income to support an equivalent capital repayment mortgage. Borrowers will need a large deposit and have a minimum £300,000 equity left in their property after the mortgage amount required has been considered 

Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage or book a consultation  

FAQs

Does Barclays offer interest-only mortgages?

Barclays is one of the largest lenders offering interest-only mortgages and the bank has just improved its policy. The lender has interest-only mortgages available from 1.3% for mortgages up to £2 million with £999 arrangement fees.

It has enhanced its Part and Part lending policy, so Barclays Wealth Management or Premier Banking relationship borrowers will be access 85% loan-to-value mortgages to help reduce monthly costs.

The existing maximum loan-to-value limits and criteria Barclays interest-only portion is 50% maximum loan-to-value and £300,000 minimum equity requirement for sale of the property repayment strategy, and 75% max LTV for other repayment strategies, such as the sale of existing stocks and shares ISAs.

Applicants will need a minimum gross annual income of £75,000 for a single applicant or £100,000 for a joint application where no individual earns in excess of £75,000.

Get in Touch

Get in touch

To arrange a meeting with one of our expert mortgage advisers complete our enquiry form or mortgage questionnaire and we will call you back. Please note, by submitting this information you have given your agreement to receive verbal contact from us to discuss your mortgage requirements.

Need some advice today?

Book a Consultation Mortgage Questionnaire
PageID1