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Our advisors are available Monday-Friday 9am to 8pm and Saturday 9am-3pm, giving you plenty of opportunity to seek a quick overview of what your mortgage deal could potentially look like.
You will be matched to an advisor who will answer your questions, queries and provide quality advice for your personal circumstances and the specific mortgage product suited to you.
An interest-only mortgage is a loan for a property that allows you to pay off just the interest on your borrowing each month, and not the capital.
This means your monthly payments don’t pay off any of the loan – instead, you pay the full amount back at the end of the mortgage term in one lump sum.
With an interest-only mortgage, your monthly repayments will be lower but your repayments won’t help you reduce your debt.
This makes interest-only mortgages risky, as they require borrowers to save or invest enough during the course of their mortgage term to be able to pay off the full amount at the end.
For this reason, interest-only deals are only really suitable for those that have a lot of equity and have a repayment plan to pay the capital lump sum back.
You can get an interest-only mortgage on a residential or buy-to-let basis; however, the lending criteria might mean this isn’t a viable option for you if you’re a first-time buyer.
Residential interest-only mortgages have strict lending criteria. Typically lenders will only allow you to borrow up to 50% of the property value, so you will need to have a large deposit or equity in your home to make up the rest.
Some lenders will also only lend on an interest-only basis to high-net-worth individuals with incomes of £100,000 or more.
Lenders will want to know how you plan to pay off an interest-only mortgage before agreeing to lend you any money on this basis.
Acceptable repayment strategies for many residential interest-only mortgages include a savings plan, an investment portfolio, a pension or other assets you plan to sell.
Capital growth, where you count on the value of your property rising over the term of the mortgage, is not usually an acceptable strategy on a residential interest-only mortgage but can be used on buy-to-let interest-only mortgage deals.
We would just like to thank you for all the hard work and time you have spend over the last few months arranging us a new mortgage deal. We will save so much. We are very thankful for securing us our first mortgage and enabling us to buy our lovely family home we will be forever grateful. Thank you for all the phone calls, emails and answering any questions I had when re mortgaging, you made the process quick and easy.
Thanks, the move went well and we are now surrounded by boxes but excited about starting the next chapter of our life in the new house. Marianne and I would like to say a huge thanks to you for your help in arranging this mortgage and will be recommending you to all our friends. It really has been a lot easier having professionals like yourselves managing the process.
Just want to say a massive thank you for helping us buy our dream home, you made the whole mortgage application stress free! We got a brilliant deal, which was fully explained and we were kept informed throughout every step of the mortgage application journey. Whilst the mortgage application was being approved, they also sorted our insurance policies and completed a re-mortgage on another property.. absolutely brilliant service!
Your team have gone above and beyond to help me and my partner get our first house. I am so impressed by how helpful and understanding they have been throughout the process. I spoke with you on the off chance during my search for a mortgage and less than a week later we had an offer accepted on a house. Me and my partner were pretty clueless when it came to the mortgage process but thanks to the team we have now completed on our first perfect home.
Just thought I’d drop you a quick email to say thank you for your wonderful service and helping us out massively in purchasing our first home together in Ashton. We couldn’t have done it without you and you explained everything so well and made sure we had a good understanding. Thank you again! And if we ever need more advice expect to hear from us!!
Representative Example: If you borrow £15,000 over 10 years. Initially, on a fixed rate for 5 years at 5.10% and for the remaining 5 years on the lender’s standard variable rate of 5.05%, you would make 60 monthly payments of £184.29 and 60 monthly payments of £185.99. The total amount of credit is £17495; the total repayable would be £22,216.80 (this includes a Lender fee of £995 and a broker fee of £1,500). The overall cost for comparison is 8.8% APRC representative.
Rates between 3.4% to 29.% APRC. Repayment terms between 3 and 30 years.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Think carefully before securing other debts against your home
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.