Working Hours: Mon - Fri: 9:00AM - 6:00PM
Call Us: 0330 304 3040
Home Mortgage Calculators About Blog
   Back | How it Works
How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
About
Blog
Contact Us
FAQs
Documents
Areas
Credit Report
   Back | Insurance
Insurance
Business Protection Insurance
Life Insurance
Building Insurance
Home Insurance
Mortgage Repayment Protection
Family Income Benefit
Critical Illness Cover
Income Protection
Life Assurance
   Back | Calculators
Calculators
Stamp Duty
Commercial Stamp Duty
How Much Can I Borrow?
Buy To Let
Bridging Loan
Residential & Commercial Bridging
Mortgage Repayment
Development Finance
Commercial Mortgage
   Back | Choose your mortgage type
Choose your mortgage type
Bad Credit Mortgages
Bridging Finance
Commercial Mortgages
Buy to let
Self Employed Mortgages
Mortgages for Professionals
Lifetime Mortgages
Expat Mortgages
Interest Only Mortgages
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Development Finance
Property Types
Remortgages
First Time Buyers
Mortgage Rejection
Offset Mortgages
Second Charge Mortgages

Finding the Best Interest-Only Mortgage Lenders

Which mortgage lenders offer the best rates on buy to let products? Find out with our independent guide to choosing the most suitable lender for your interest-only mortgage deal.

Finding the Best Interest-Only Mortgage Lenders

Interest-only mortgages have become a less common product, and the Revolution Brokers team deals with multiple enquiries asking for help working out which lenders offer the best products or the most competitive rates.

Lenders all work on their own criteria, and so it can be challenging to work out who to apply to, particularly if you have been turned down for lending from a high street bank or mainstream provider.

In this guide, the mortgage brokers team runs through the criteria that lenders will work to, and how to find the right lending. For tailored support with your interest-only mortgage requirements, give the team a call on 0330 304 3040, or drop an email to [email protected].

Which UK Mortgage Providers Offer Interest-Only Products?

Lots of lenders offer interest-only lending, although this is becoming less common. High street lenders may have strict criteria that limit the number of applicants they will accept.

About Your Mortgage
Single or joint mortgage?
What’s your yearly income?

Error: Yearly income income must be between £1 and £10,000,000.

Do you receive a regular bonus?

Error: Regular bonus must be between £1 and £10,000,000.

Based On Your Yearly Income, You May Be Able To Borrow

image
£0

Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.

image
£0

Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.

image
£0

Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

How Do Eligibility Criteria Work for Interest-Only Mortgages?

Most lenders will look at the following factors before deciding if they can offer to lend:

  • Your deposit, and the Loan to Value ratio

Most interest-only mortgages need a higher deposit than repayment lending - often around 25% as a minimum. As an example, some of the larger high street lenders do have interest-only products, but with a maximum cap of 75% Loan to Value - this includes HSBC, Lloyds, Barclays and the Post Office bank.

  • Your repayment strategy

Lenders need to know how you will repay the loan balance at the end of the term. Some lenders will consider a plan to sell the property acceptable, but many will not.

Providers may also require you to receive independent financial advice before proceeding with an interest-only application - such as Barclays. Other lenders, such as Halifax and Santander, do not have such a requirement but will ask for updates throughout the mortgage term to ensure your repayment strategy remains viable.

Can I Get an Interest-Only Mortgage on a Residential Property Purchase?

You can - although interest-only loans are most common in the buy to let property sector. However, lenders can offer residential interest-only mortgages.

The process will consider your affordability rating, as well as how stable your repayment plan is.

Which are the Best UK Lenders to Apply to for an Interest-Only Mortgage?

Initially, we'd advise against contacting your existing mortgage provider or bank - because it is highly likely that you will achieve more competitive rates by comparing products from across the interest-only lending market.

Your bank may also reject your application, leaving a mark on your credit score, which can be problematic when applying to a more suitable lender.

Online calculators can be useful in getting a rough idea of costs and maximum borrowing values, but are only ever indicative and should not be used as the basis for taking out lending secured against your home.

For help understanding which lenders are most likely to accept your application, and offer the most appealing terms, contact Revolution on 0330 304 3040.

Which UK Interest-Only Lenders are Most Likely to Approve my Application?

The key to a successful application is to know the lender criteria and prepare your application in advance, to ensure you meet all the essential requirements.

It can be impossible to know, or find out, their criteria without using an expert for advice, so we always recommend contacting an independent broker for support with identifying the best lenders to apply to.

Expert Advice on UK Interest-Only Mortgages

For help identifying the right interest-only mortgage lender for you, comparing products, and securing competitive lending, contact Revolution Brokers on 0330 304 3040, or email us at [email protected].

As an independent whole-of-market broker, we are proud to support every client in finding the best lending options, and the most attractive rates, leveraging our years of experience to secure successful outcomes.

Further Reading

PROCESS

Explore Our Presence

Securing an excellent mortgage offer with Revolution Finance
Brokers couldn't be easier:

cityam
dailyexpress
dailymail
standard
FT Advisor
LBC
The Guardian
Independent
Metro
Mortgage Introducer
Sky News
The Sunday Times
Yahoo
This is Money
Mirror
LBC
The Sunday Times
PROCESS

Revolution Mortgage Brokers:
100% Independent & Whole-of-Market

As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.

REFERRALS

Refer, Relax, and get £50

Ask the Expert
Mortgage Brokers

Revolution Brokers
What can we help you with today?
Do you have a particular timescale in mind?
Next
Which situation from the below list best matches your requirements? *
Could you tell us the market value of the property?*
Please let us know a rough idea of your yearly income (before tax) for all applicants? *
Back
Next
Primary applicant name *
Contact email address *
Best contact number *
Back
Next