Interest only mortgage guide.
Interest only mortgages still exist but with stricter criteria than before 2014. You need a credible repayment vehicle — a plan to repay the capital at the end of the term — and most lenders require a minimum income and maximum LTV. We know which of our 90+ lenders still offer interest only and under what conditions.
Lenders typically accept: sale of the mortgaged property (downsizing), sale of other property, investments and pensions, endowment policies, ISA portfolios, and other verifiable assets. The repayment vehicle must be realistic and demonstrable — not speculative. Each lender has different requirements for evidence.
Many borrowers use a part interest-only, part capital repayment structure. For example, £300,000 on interest only and £100,000 on repayment. This keeps monthly payments manageable while building some equity over time. We structure these to meet lender criteria while keeping your payments as low as possible.
If you are currently on capital repayment and struggling with payments, switching part or all to interest only can reduce your monthly cost significantly. This is a short-term solution — the capital still needs to be repaid eventually — but it can provide breathing room during difficult periods.
Interest only mortgages are not right for everyone and the criteria are complex. Call 0199 267 6961 for a free assessment of whether interest only is available and appropriate for your circumstances. No broker fee.
Interest only is not inherently risky — it is a financial tool that serves specific purposes. For a Hertfordshire homeowner facing temporary income reduction, switching part of the mortgage to interest only provides genuine breathing room. For a BTL investor, interest only maximises rental cash flow. For a later life borrower, retirement interest only provides affordable payments without a fixed end date. The risk comes from using interest only without a repayment plan, not from the product itself. We assess whether interest only is appropriate for your situation and structure it with a credible exit strategy.
The information in this guide reflects the advice we give Hertfordshire clients every day. But every buyer's situation is different — your income structure, deposit, credit history, target area and timeline all affect which lender and product is optimal. A guide can inform your thinking but it cannot replace a conversation with an adviser who can assess your specific numbers. Call 0199 267 6961 for a free 30-minute assessment. We will confirm your borrowing capacity, identify the best lender for your circumstances, and issue an agreement in principle within 24 to 48 hours. Evening and weekend appointments are standard for Hertfordshire clients. No broker fee at any stage.
For further reading, see our other Hertfordshire mortgage guides: how much to buy in St Albans, Watford, Stevenage and Hertford; when to remortgage in Hertfordshire; the self-employed mortgage guide for Hertfordshire professionals; our buy-to-let investment guide covering yields by town; and the contractor mortgage guide for day rate specialists. Each guide includes worked examples with real Hertfordshire numbers. All guides are available at our blog page or by searching the articles section of this site.
Call 0199 267 6961 for a free initial conversation. We gather your income details, deposit position and target budget, then search 90 lenders to find the best combination of rate and borrowing capacity for your specific circumstances. Within 24 to 48 hours we issue an agreement in principle so you can start viewing and making offers with confidence. The call takes 20 to 30 minutes and there is no obligation at any stage. We manage the entire mortgage process from first call through to completion — lender selection, application packaging, underwriting liaison and solicitor coordination. Evening and weekend appointments are available as standard for Interest Only Guide clients. No broker fee — we are paid by the lender on completion.
A bank branch offers its own products — typically 10 to 15 options from a single provider. We compare over 90 lenders including specialist providers that your bank cannot access. For Interest Only Guide property values, the rate and borrowing differences between lenders are not marginal — they determine whether you can afford your target area, how much your monthly payments are, and how much interest you pay over the full term. Self-employed buyers, contractors and those with complex income benefit most from whole-of-market advice because specialist lenders routinely offer tens of thousands of pounds more borrowing than standard banks for the same income. Free advice, no broker fee.
Free mortgage advice — no broker fee — 90+ lenders searched for you
📞 0199 267 6961Yes. Our whole-of-market mortgage advice carries no broker fee. We are paid by the lender on completion.
90+ lenders — high street banks, building societies and specialist lenders. Significantly more than any bank or tied adviser.
Usually within 24-48 hours of your first call.
Yes. St Albans, Watford, Hertford, Stevenage, Welwyn Garden City and every town across the county. Phone and video appointments available.
Yes. Self-employed, contractors, company directors, freelancers, multiple income streams — we have lender options for most situations.
Yes. We are FCA authorised and follow strict data protection requirements. Your information is never shared without your consent.
We frequently help buyers declined by banks. Specialist lenders have different criteria and we know which ones match your circumstances.
No broker fee. No obligation. Whole-of-market advice from a Hertfordshire mortgage broker who picks up the phone.
0199 267 6961Localnest Mortgages is an Appointed Representative of [Network Name], which is authorised and regulated by the Financial Conduct Authority (FCA). Your home may be repossessed if you do not keep up repayments on your mortgage. The information on this website is for guidance only and does not constitute financial advice.