The simple answer is yes, but you will need to meet the lender’s specific criteria to qualify for an interest only mortgage.
How much can I borrow on an interest only mortgage?
The same affordability criteria applies to an interest only mortgage as a repayment mortgage. Each lender will apply their own individual criteria, but it may be possible to borrow up to 75% loan to value on an interest only basis.
Can I have a part repayment – part interest only mortgage?
Yes, and with this option you could potentially borrow more. For example, if you bought a house for £400,000, and you had a £50,000 deposit,. You could borrow the first £200,000 on interest only and a further £50,000 on repayment.
What is a Retirement Interest Only Mortgage?
In situations where individuals are coming to the end of their current interest only mortgage term. Some lenders are now offering Retirement Interest Only Mortgages. This type of mortgage is suitable for customers you are unable to repay their balance but can maintain their payments, this type of mortgage has no set end date.
How can the Mortgage Marketplace help?We work with all lenders that offer interest only mortgages and understand the unique criteria that each lender will apply.