Today’s Best Interest Only Mortgage Rates Compared

If you’ve been researching mortgage rates for your property purchase, you may be wondering what sort of interest rates to expect with an interest-only mortgage.

The table below gives you an immediate illustration of the best interest rates you can get at the moment for this type of mortgage repayment method.

A mortgage broker will be able to show you more of what’s currently on offer whilst providing advice on which deal would best suit your circumstances.

Please note that the above rates were accurate at the time of writing (April 2023), but are always subject to change. Speaking to a mortgage broker is the best way to find the most up-to-date deals.

What are the best interest only mortgage rates available right now?

As you can see from the tables above, the best available rates at the moment (April 2023) are just over 4% up to just under 5%, depending on your circumstances and the size of your deposit / loan-to-value (LTV).

Your personal situation (e.g. if you’re self-employed or have had bad credit recently) and the specific property you want to buy (e.g. a non-standard construction property) can all have a potential impact upon which mortgage lenders you can use and, therefore, the interest rate you qualify for.

It’s also worth noting that the best deals won’t necessarily always be found with high street banks and mainstream lenders, which is why trying to find an interest-only mortgage deal with the guidance of an expert broker is the surest path to getting the lowest rates.

How a broker can help find you the best interest-only mortgage rates

When you start looking at interest rates, it’s difficult to get a true comparison because there are so many variables at play. An experienced mortgage broker will be able to guide you in your search, making sure you know what the very best rates are for interest-only mortgages from across the entire market.

They can also help with:

• Identifying the right lender for your specific mortgage requirements
• Sourcing exclusive rates and deals not available to the general public
• Help you download and review your credit reports before you apply to avoid any unnecessary rejections
• Assist with preparing all the necessary documentation for your mortgage application

If you’d like to speak with a mortgage broker specialising in interest-only mortgages, just make an enquiry. We’ll introduce you to an expert advisor for free.

Use our Interest-only mortgage calculator

Our calculator below will help you work out how your repayments could look, based on your own situation and borrowing requirements.

Just type in your loan amount, interest rate and term, then click on the toggle button (from left to right / red to green) for the interest-only repayments.

Using a mortgage calculator is a great starting point if you want to carry out some comparisons to find the cheapest deals with the best rates.

Just keep in mind that although this calculator will give you some useful estimates to work with, the only way to get accurate figures for your interest-only mortgage is by using a skilled advisor to carry out a bespoke comparison.

Getting a cheaper rate with a higher loan-to-value

We touched on this earlier, but you’ll find that many of the best interest-only mortgage rates available are with a 60% LTV ratio. However, this isn’t always the case. It can still be possible to get cheap rates with a higher LTV.

For example, the best interest-only mortgages available right now (April 2023) for 75% LTV comes with initial interest rates as low as 3.99% (4.1% APRC). And even with an 80% LTV, there are still mortgage deals to be found for similar rates. So, if you can only manage a smaller deposit, a specialist advisor can still find you competitive rates.

Remortgage rates

Just like there are specific deals for new customers and first-time buyers, there are also excellent rates available for those looking to remortgage. However, the best rates will likely not be with your existing lender.

So if you want to refinance onto the lowest rates with an interest-only remortgage, an expert broker will find them and walk you through the whole process of remortgaging or assisting you with switching from repayment to interest-only.

Why Use Online Money Advisor?

No matter your current situation, if you want to explore the best possible interest-only mortgage rates, guidance from a specialist broker is essential. But finding an experienced mortgage advisor can be challenging.

We offer a free broker-matching service. This means we’ll quickly assess your circumstances and then introduce you to a specific interest-only mortgage broker for free, one who can show you the lowest rates available.

Just call 0808 189 0463 or make an enquiry. We’ll arrange a free, no obligation chat between you and an expert interest-only mortgage advisor today.