Interest only loans that offer the cheapest mortgage payments are hard to find.

Traditionally the cheapest mortgage with the lowest monthly payments is an interest only loan. However new products of this type are becoming more scarce and more difficult to secure. If you are looking for a comparison call Deal Direct, with access to whole of market lending we can compare the best deals and advise you of various lenders criteria for loans.

Earlier this year many lenders tightened their criteria for interest only lending. Lloyds for example, were reported to be asking for security of over £93,000 in other assets to show the ability to repay a loan of £100,000. Other lenders have reduced their interest only product ranges and the Co-operative Bank have withdrawn interest only products altogether.

The cheapest mortgage rates are generally available if you have a large amount of deposit, or equity if you are remortgaging. This is now particularly key for interest only products, with many lenders only offering products if you have at least 50% deposit or equity.

Monthly payments on interest only products are less than for repayment mortgages because only the interest is being paid. In the past this has been the cheapest way for first time buyers to get onto the housing ladder. With stricter lending criteria and fewer interest only products such deals are now available to very few people.

Call Deal Direct to see if you meet the lending criteria for interest only. We will find you the cheapest mortgage offer by comparing all deals on offer in the UK market.

Deal Direct can help you find a suitable product at the best rates available.