For residential clients who like to make their money work harder

With lower monthly repayments, an Interest-only mortgage helps your client’s money work harder by freeing up cash they can use in other ways. 


Our Interest-only product range has no minimum income requirement and is available on a range of fixed and Offset mortgages for your residential clients.


If your client took out their existing residential Interest-only mortgage with us before September 2020, we apply a different lending criteria. View the Interest-only criteria.


If your client is struggling to meet their mortgage payments or if they want to discuss any changes to their repayment plan, they should contact us as soon as possible on 0800 121 8899.

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Our Interest-only overview

Your client must have:
  • Sufficient income to support an equivalent repayment mortgage and meet our repayment affordability checks
  • A maximum of 50% LTV
  • A minimum of £300,000 equity left in the property after the mortgage amount required has been taken into account

Repayment strategy

Your client will need to show evidence of an acceptable repayment plan, based on current values, not projected forecast. For example;
  • Sale of investments
  • Pension lump sum
  • Sale of property

Take a look at all our acceptable repayment strategies


Please note: An Interest-only loan on an Interest-only specific products cannot be used for debt consolidation.

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Case studies

Interest-only mortgages in real-life

Want to see an Interest-only mortgage that makes money work harder for clients like yours? Browse these case studies for real-life examples of residential clients.

Important information

Age limits apply
All applicants must be aged 18 or over, and no more than 75 years old at the end of the mortgage term.
Interest-only products and overpayments
Your client can make overpayments to their mortgage of up to 10% of the capital each year. Their mortgage terms and conditions will give them all the details.
Changing to a repayment mortgage

Your client can apply for a new repayment mortgage at any time, subject to our lending policy. ERCs may apply – their mortgage terms and conditions will have all the information they need.



Downsizing to a smaller property

If your client is downsizing, they can keep their Interest‐only mortgage as long as they still have £300,000 equity in the new property and a maximum LTV of 50



If your client is struggling to meet their mortgage payments
Or if they want to discuss any changes to their repayment plan, they should contact us as soon as possible on 0800 121 8899.
Product fees
Any fees that relate to your client’s specific product will be in their mortgage offer. Further details can be found in our fees and charges booklet.
Part repayment/part Interest-only mortgages

We don’t offer part repayment/part Interest‐only mortgages.


The maximum LTV is 50%
The total loan amount mustn’t exceed 50% LTV, either at the time of application or during the term of the mortgage.
Additional borrowing
Your client will be able to apply for additional Interest‐only borrowing as long as the LTV doesn’t exceed 50% for the whole mortgage and there is still at least £300,000 equity left in the property. Any additional borrowing is subject to lending criteria and product availability at the time of application and will need to be on a new product, unless your client is on an Interest‐only Offset.
Porting an Interest-only mortgage
All of our Interest‐only mortgages are portable so your client could apply to take it with them if they move to a new house. They’ll still need to have an acceptable repayment plan in place and we’ll need to see evidence of that.
Paying off an Interest-only mortgage early

ERCs may apply – the mortgage offer will have details of any charges we’ll make. However, if at the end of the mortgage there is less than six months of the benefit term remaining, we’ll waive any ERCs.


Useful links


Residential Interest-only products

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Buy to Let Interest-only products

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Interest-only criteria

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