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        Updated: April 17, 2024

        Today’s Best Interest Only Mortgage Rates Compared

        Want to know how to find the best interest rates for an interest-only mortgage? Here’s everything you need to know about getting the best deal with the lowest rate.

        Ask a quick question

        We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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        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.

        Lender Product Details
        Frosted Rates Image

        Looking for more rates and deals?

        We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market and help you secure the best ones available.

        Last updated August 2023

        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.

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        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:

        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.

        calculator icon

        Mortgage Repayment Calculator

        Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.

        Enter the amount you're borrowing
        2.5% is an average figure but the rate you get may vary
        25 years is average, but most lenders offer longer and shorter terms

        Monthly Repayments:

        Total amount paid at end of term:

        Get started with an expert broker to find out how much they could help you save on your mortgage 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.

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        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.

        Ask a quick question

        We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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        Pete Mugleston

        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.