Interest-Only Mortgages.

An interest-only mortgage keeps your monthly payments low because you only cover the interest, not the capital you borrowed. Set against a repayment mortgage, where each payment chips away at the balance, your outgoings each month are smaller. The catch sits at the end. When the term finishes, the full loan is still owed as one lump sum, so you need a solid plan for clearing it, called a repayment vehicle. Our [repayment calculator](/calculators/repayment) lets you put interest-only and repayment costs next to each other.

Lenders pulled back on interest-only lending after the 2008 financial crisis and tightened who they would say yes to. These days most ask for a minimum income, a sizeable deposit of around 25% or more, and proof of a workable repayment strategy. That strategy might rest on investments, savings, a pension lump sum, or the sale of a property.

At Clearview Mortgage Solutions we keep track of which lenders still write competitive interest-only deals and which repayment vehicles each one accepts. You might be a high earner who values the lower monthly commitment, a landlord, or someone reaching the end of a current deal and weighing up an [interest only remortgage](/mortgage-types/remortgage-mortgages). Whatever your situation, an adviser can walk you through the choices that actually fit.