Interest-Only Residential Mortgages

The cost of living crisis is affecting pretty much everyone at the moment.  

Energy bills have gone up. The price of fuel has increased. The weekly food shop is more expensive. And then, of course, there’s the mortgage. 

Over the past couple of years, rates have shot up from their previous record lows meaning that a lot of people have seen their monthly mortgage payments double or even triple.  

You might not have noticed the impact of these increases yet, but if your fixed rate is finishing soon then you could be in for a nasty shock. And if you’ve already come to the end of your previous deal, then you might now be struggling with your new higher monthly payments. 

A lot of people believe the only solution is to cut back on other things. So they’re cancelling holidays, skipping nights out, or leaving the heating turned off. 

But there is another solution that means you can keep your monthly outgoings at a manageable level without having to make those sacrifices – and that’s to switch to an interest-only mortgage. 

This means that your monthly mortgage payment is reduced because you’re only covering the interest on the loan rather than paying off any of the capital. 

However, when you do have extra money – for example, if you receive an annual bonus – then you’ve still got the option to make overpayments whenever you like. 

The beauty of this approach is that you can chip away at your mortgage balance in the months where you can afford to pay a bit more, but you’re not forced to pay more than just the interest if you have a month where money is a bit tight. 

As long as you manage things correctly, this kind of flexibility can let you keep or buy the home you want without having to give up all of life’s pleasures. In fact, you could even end up paying off your mortgage sooner than if you stuck to a traditional repayment mortgage. 

Not all banks offer interest-only mortgages and those that do have strict rules around who they will offer them to. So, before you waste time or impact your credit score by applying to a lender who won’t accept you, it makes sense to take expert mortgage advice. 

And that’s where we come in. We’ve got access to over 70 lenders, including ones you won’t find on the High Street – which means if you apply through us you’re more likely to get approved and we’ll be able to find you the lowest cost option for your specific circumstances. 

To get started, fill out our quick enquiry form or give us a call on 0333 772 1551.