Interest Only Mortgages
Had an interest-only mortgage for years, and now the end date is approaching?
Feeling uncertain about what lies ahead? You're not alone. Many homeowners face situations where their current lender won't extend their mortgage term or have concerns about repaying the balance.
The good news is that options might still exist. Our panel of lenders offers a variety of repayment strategies, such as using savings or pensions, and in some cases, even the sale of your home where there is deemed to be sufficient equity.
If your interest-only mortgage is ending and you're feeling anxious, don't handle the stress alone. Contact us so we can explore your options together. *Subject to full mortgage application and product range.*
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
FAQs
How does an interest-only mortgage work?
With an interest-only mortgage, your monthly payments cover only the interest charged on the amount you borrowed. This means the principal balance doesn’t decrease, and you’ll need separate plans to repay this amount by the time your mortgage ends.
What happens when my Interest-only mortgage term ends?
When it ends, you’ll need to repay your loan in full with a single lump-sum payment. How you’ll make this lump-sum payment will be discussed when you apply for your mortgage. You’ll need to have a suitable repayment plan in place from the start of the mortgage and throughout the term.
It’s your responsibility to ensure you have enough money to repay the loan at the end of the term. You should regularly review your repayment strategy to make sure it’s on track. Contact us so we can explore your options together.
Can I change my interest-only mortgage to a capital repayment mortgage?
Yes, you can normally switch some or all of your interest-only mortgage to a repayment mortgage (also known as a capital repayment mortgage) if it suits you and you meet the lender's criteria. A mortgage lender would probably not charge a fee for this, although you will see an increase in your monthly mortgage payments.
Can I get an interest-only mortgage?
There are lenders in the market who offer interest-only mortgages; however, you must meet certain criteria to qualify. For example, some lenders may require you to earn over a certain amount each year; additionally, you need to have a clear, reasonable, and feasible repayment strategy in place.
Again, It’s your responsibility to ensure you have enough money to repay the loan at the end of the term. You should regularly review your repayment strategy to make sure it’s on track. Contact us so we can explore your options together.
Contact us
Contact us today for all your mortgage needs
Ready to take the next step?
Schedule a free, no-obligation chat to discuss your plans and explore what is possible, with no pressure to proceed.
Office: 01274 265571
alfie@crownestmortgages.co.uk
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