Interest Only mortgages
With an Interest Only mortgage, you pay only the interest during the term. You’ll need a repayment plan in place for how you intend to pay the full balance at the end of the term.
Find out if an Interest Only mortgage is right for you — including how it works, who’s eligible, and how to apply.
Interest Only mortgages
With an Interest Only mortgage, you only pay the interest on your mortgage balance each month, so your payments are lower than with a Repayment mortgage.
You won’t reduce the balance, so you’ll need to repay it in full at the end of the term and you’ll pay more interest overall.
When you apply, you’ll need to tell us how you plan to repay the balance. Check our eligible mortgage repayment plans to see what’s included.
Part and Part mortgages
With a Part & Part mortgage, you repay some of the mortgage balance during the term, but not all of it.
Your payments will be lower than a Repayment mortgage and you’ll pay more interest overall. You’ll still have a balance to repay at the end of the term.
When you apply, you’ll need to tell us how you plan to repay the remaining balance. The same mortgage repayment plan options apply as for Interest Only.
Base rate information from the Bank of England:
Product features
- Available across our entire mortgage product range, including first time buyers.
- For Interest Only mortgages, the maximum we’ll lend is 75% Loan to Value (LTV).
- For Part & Part mortgages, the maximum we’ll lend is 85% LTV (75% can be Interest Only).
- Maximum mortgage term 40 years, or retirement if sooner (maximum age 70).
- Maximum loan amount of £5 million.
Important mortgage information:
Eligibility
You will be eligible if:
- You meet the minimum income criteria of £75,000 for sole applicants, or £100,000 for joint applicants (unless one applicant earns £75,000). We base minimum income on your basic salary only.
- If you have a leasehold property you must have a minimum lease term of 70 years remaining at application.
- You have an eligible mortgage repayment plan, such as selling the property or using UK savings.
You wont be eligible if:
- You are raising funds to repay unsecured debt.
- You have a secured loan, but it’s not being paid off.
- You’ve retired, or the term would go into your retirement.
- You want to use Interest Only in conjunction with any other scheme. For example, Shared Ownership, Right to Buy, Helping Hand.
- You’re applying for Green Additional Borrowing.
Check if you're eligibile
Find out what you could afford
Plan your monthly payments using our repayment and borrowing calculators.
Repayment calculator
Find out how much your monthly mortgage repayments might be, or how a rate change could affect your monthly payments.
Borrowing calculator
Our calculator gives you an idea of what you could borrow based on your income, property price and deposit.
Apply for an Interest Only mortgage
Before you begin your application, make sure you’ve checked your eligibility.
To apply for an Interest Only or Part & Part mortgage with us you’ll need to complete a Decision in Principle (DIP) by phone. This will give you an idea of how much we may be able to lend you.
Apply by phone
Call us to speak with one of our mortgage representatives.
Monday to Friday, 8am to 6pm.
Saturday 8:30am to 4pm.
Closed Sundays and bank holidays.
Continue your application
If you’ve already started a mortgage application with us, continue it when you’re ready.
Interest Only options for existing customers
As an existing customer, you may have different Interest Only options available, depending on your circumstances.
These could include:
- Repayment additional borrowing for existing Interest Only customers
- Interest Only additional borrowing for existing Repayment mortgage customers
- Porting your mortgage when you move home
- Change from a Repayment to an Interest Only mortgage
- Change from an Interest Only to a Repayment mortgage.
Manage your Interest Only mortgage
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