Interest Only Mortgages
Enjoy lower monthly payments with flexible interest-only mortgage options suited to your financial strategy.
AN INTEREST-ONLY MORTGAGE OFFERS LOWER MONTHLY PAYMENTS BY COVERING ONLY THE INTEREST, WITH THE FULL LOAN AMOUNT DUE AT THE END OF THE TERM. THIS OPTION IS IDEAL FOR HIGH EARNERS, INVESTORS, OR THOSE WITH A SOLID REPAYMENT STRATEGY, SUCH AS PROPERTY SALES OR INVESTMENTS. THE GOT ENSURES YOU HAVE THE RIGHT FINANCIAL PLAN IN PLACE TO SETTLE YOUR MORTGAGE WHEN THE TIME COMES.
Who Qualifies for an Interest-Only Mortgage?
Interest-only mortgages were once limited to a select group of borrowers, but lenders have now widened their criteria. While some lenders require a minimum annual income (typically £75,000–£100,000), others focus on factors like property equity or alternative repayment plans.
At The GOT, we assess your financial situation and connect you with lenders that match your eligibility, ensuring you secure the best possible mortgage deal.
Smart Repayment Strategies for Interest-Only Mortgages
Since the loan balance remains unchanged throughout the term, having a solid repayment plan is crucial. Lenders may accept various repayment strategies, including:
●●● PROPERTY SALE
Using proceeds from selling the property at the end of the term.
●●● INVESTMENT GROWTH
Building capital through ISAs, pensions, or other investment portfolios.
●●● BUY-TO-LET ASSETS
Leveraging rental income or property equity to settle the loan.
●●● LUMP-SUM PAYMENTS
Paying off the mortgage with bonuses, inheritance, or business profits
Our team ensures your chosen strategy aligns with lender requirements and supports your long-term financial goals.
Stay on Track with Your Mortgage Plan
An interest-only mortgage offers flexibility, but regular reviews are essential to ensure your repayment plan stays on course. At The GOT, our advisers provide ongoing support, helping you adjust your strategy if needed.
Benefits of an Interest-Only Mortgage
●●● LOWER MONTHLY PAYMENTS
Ideal for freeing up cash flow while managing other investments.
●●● GREATER FINANCIAL FLEXIBILITY
A smart option for high earners and property investors.
●●● DIVERSE LENDING OPTIONS
We help you access lenders offering tailored interest-only solutions.
Get Expert Interest-Only Mortgage Advice
Considering an interest-only mortgage? Let The GOT guide you toward the best deal with a structured repayment plan that secures your financial future.
Frequently Asked Qestions
What is an interest-only mortgage?
With an interest-only mortgage, you only pay the interest each month — not the loan itself. That means your monthly payments are lower, but you’ll need a plan to repay the full loan at the end of the term.
It can be a smart option in the right circumstances — especially if you have investments, savings, or a plan to sell the property later.
It can be a smart option in the right circumstances — especially if you have investments, savings, or a plan to sell the property later.
Why would someone choose an interest-only mortgage?
Lower monthly payments are the main appeal. It can help with cash flow, especially for high earners, landlords, or people with irregular income.
It’s not for everyone, but for the right buyer, it can offer flexibility without straining your monthly budget.
It’s not for everyone, but for the right buyer, it can offer flexibility without straining your monthly budget.
How do I repay the loan at the end of the term?
You’ll need a clear repayment plan — such as selling the property, using investments, savings, or switching to a repayment mortgage later.
We’ll help you create a plan that lenders trust — and that works for you long-term.
We’ll help you create a plan that lenders trust — and that works for you long-term.
Can I get an interest-only mortgage as a first-time buyer?
It’s possible, but it’s not very common. Lenders usually offer interest-only to experienced buyers with strong finances and a solid repayment strategy.
But don’t rule it out — if it’s the right fit for your situation, we’ll help you explore it.
But don’t rule it out — if it’s the right fit for your situation, we’ll help you explore it.
Are there risks involved?
Yes — because you're not reducing the loan balance during the term, you’ll still owe the full amount later. If your repayment plan doesn’t work out, you could need to sell the property or refinance.
That’s why we take time to make sure it’s the right fit — and help you build a realistic plan from day one.
That’s why we take time to make sure it’s the right fit — and help you build a realistic plan from day one.
Can I switch from interest-only to repayment later?
Yes, many people do this once their financial situation changes or becomes more stable. Lenders may allow you to switch part or all of your mortgage to a repayment plan.
We’ll be with you for the journey, helping you adjust your mortgage as life changes.
We’ll be with you for the journey, helping you adjust your mortgage as life changes.
What kind of deposit do I need?
Typically, lenders ask for a larger deposit — often 25% or more — because interest-only mortgages carry more risk for them.
Don’t worry — we’ll help you find the most suitable lenders and walk you through what they require.
Don’t worry — we’ll help you find the most suitable lenders and walk you through what they require.
Is this suitable for buy-to-let properties?
Yes — in fact, many landlords use interest-only mortgages. They keep monthly costs low and allow you to focus on generating rental income.
If you're an investor or building a property portfolio, it might be worth considering.
If you're an investor or building a property portfolio, it might be worth considering.
Deepak Jose CeMAP CertPro
Mortgage & Protection Adviser
Trust and credibility are at the heart of what we do in Bexley, London. We ensure that every solution we offer is in your best financial interest.
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