Please note:

Interest Only Mortgages

We offer a range of Interest Only mortgages for your clients, provided they have the ability to repay the capital at the end of their mortgage term.

Our Mortgages can be either Interest Only or Part and Part (e.g. combination of Interest Only and Capital and Interest).

  • No minimum income required (subject to affordability assessment).
  • We accept a wide range of repayment strategies to suit your client's needs, including the sale of a mortgaged property.
  • Free standard valuation up to £999.
  • For full details of our Interest Only criteria, including LTV rates, view our criteria guide.

Our repayment strategies

Your client should know from the start how they're going to repay the mortgage at the end of the mortgage term.

It is their responsibility to ensure that they have sufficient funds to repay the amount borrowed on an Interest Only basis and (where applicable) any accrued interest at the end of the term.

We allow:

Sale of a mortgaged property

Use our minimum equity finder to see how much they would require as minimum equity.

The equity can include the deposit and the amount that will be repaid under capital and interest terms (i.e. Part and Part).

Our mortgages rates

2 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/05/23Then changing to the Society's SVR less a discount of 1.25%, up to and inc. 31/05/2026, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.84% 4.04%5.29%4.8%60%£1,999 View
Max loan amount £1,250,000
1.89% 4.04%5.29%4.8%60%£999 View
Max loan amount £1,250,000

Legal Assisted Part and Part 2 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/05/23Then changing to the Society's SVR less a discount of 1.25%, up to and inc. 31/05/2026, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.99% 4.04%5.29%4.5%75%£999 View
Max loan amount £1,250,000
RATES CORRECT AS AT 11 february 2021

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £180,000.00 payable over 25 years initially on a fixed rate for 2 years at 1.89% and then a 1.25% discount on our current Standard Variable Rate of 5.29% giving a rate of 4.04% for 3 years and then on our current Standard Variable Rate of 5.29% for the remaining 20 years would require 24 monthly payments of £283.50, 36 monthly payments of £606.00 and 240 monthly payments of £793.50.

The total amount payable would be £400,094.00 made up of the loan amount plus interest of £219,060.00 and application fee £0, product fee £999, valuation fee £0, funds transfer fee £35.

The overall cost for comparisons is 4.8% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

This representative example has been calculated on an interest only basis.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product fee is payable on application (where applicable) but is refundable should the mortgage not complete. A mortgage exit fee of £199 will apply.

  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • Tapered Early Repayment Charges apply up to and including 31 May 2023.
  • Free Standard valuation up to £999.
  • Interest calculated daily.
  • Available where part or all of the mortgage is on Interest Only.
  • The sale of the mortgaged property can be used as a repayment strategy. However, there must be sufficient equity remaining after the mortgage has been repaid to make downsizing to another property possible.
  • Maximum Interest Only element 60%.
  • Fees assisted legal services for standard re-mortgages.
  • When you’re applying for an interest only mortgage, please be aware that you’ll need to have a credible repayment strategy in place to pay off the loan and any interest accrued under the mortgage at the end of the term. All repayment strategies will be subject to approval by our mortgage underwriters.

5 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/05/26Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
2.04% 5.29%4.1%60%£1,999 View
Max loan amount £1,250,000
2.10% 5.29%4.1%60%£999 View
Max loan amount £1,250,000

Legal Assisted Part and Part 5 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/05/26Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
2.19% 5.29%4.2%75%£999 View
Max loan amount £1,250,000
RATES CORRECT AS AT 11 february 2021

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £180,000.00 payable over 25 years initially on a fixed rate for 5 years at 2.19% and then on our current Standard Variable Rate of 5.29% (variable) for the remaining 20 years would require 60 monthly payments of £779.18 and 240 monthly payments of £1022.52.

The total amount payable would be £293,190.37 made up of the loan amount plus interest of £112,156.37 and application fee £0, product fee £999, valuation fee £0, funds transfer fee £35.

The overall cost for comparison is 4.2% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

This representative example has been calculated on an interest only basis.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product fee is payable on application (where applicable) but is refundable should the mortgage not complete. A mortgage exit fee of £199 will apply.

  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • Tapered Early Repayment Charges apply up to and including 28 February 2026.
  • Free Standard valuation up to £999.
  • Interest calculated daily.
  • Available where part or all of the mortgage is on Interest Only.
  • The sale of the mortgaged property can be used as a repayment strategy. However, there must be sufficient equity remaining after the mortgage has been repaid to make downsizing to another property possible.
  • Maximum Interest Only element 60%.
  • Fees assisted legal services for standard re-mortgages.

 

We have developed a set of short, easy-to-use guides to our criteria.

View our criteria guides »

Any questions?

Please contact your nearest Development Manager. Find your nearest Development Manager »