Compare interest-only mortgage ranges with mortgage broker, Deal Direct.

Interest only mortgages offer an alternative way to finance your property purchase and mortgage broker, Deal Direct, can help guide you through the available ranges.

These types of mortgages could be of interest to you if you have a clearly determined exit plan, meaning you know exactly how the loan amount will be paid off at the end of the mortgage term.

Your exit plan will be of particular interest to a lender offering an interest-only deal. Borrowers would usually take out an endowment policy and use that, upon maturity, to pay the outstanding loan. However, some lenders are now taking a more flexible approach and will consider alternative methods of settling the mortgage.   

Skipton Building Society, for example, have recently reviewed their lending criteria and broadened what they will accept as a repayment strategy for their interest-only mortgage range. An acceptable exit plan includes the proceeds of the sale of a mortgaged property, however, rules exist as to minimum amounts of equity within the property and the proportion of loan to value.

Another acceptable strategy includes using up to 15% of the home owner’s projected pension value.

Skipton’s maximum loan limit of £500,000 has also been dispensed with and replaced by standard maximum limits.

To find out more about interest-only mortgages and whether it would be a suitable home financing option for you, contact one of our experienced team members here at Deal Direct. We can talk you through the pro’s and con’s of interest-only as well as all the other types of mortgage available.  

Call 0800 048 8828 for expert mortgage advice.