Currently it is a lot more difficult to get an interest-only mortgage and strict criteria has to be met:
- A high minimum income is often required, along with a substantial deposit (at least 25%).
- Evidence of how you plan to repay the loan at the end of the mortgage term. Most lenders will request to see more than just having a savings account.
Interest-only mortgages are more often approved for those borrowers at the higher end of the affordability scale that have enough income to afford a repayment mortgage, but there are still lenders who will lend to lower incomes too.
An interest-only mortgage is a higher risk than a repayment mortgage so Fairview Financial will look at your circumstances and advise a suitable option for you. We are also able to search across the market, having access to specialist lenders, to find you a competitive rate best on your affordability.
For more information and guidance on interest-only mortgages contact our specialist team.