Interest only purchases

interest only mortgage miracle

Interest only at 75% loan to value

Over the last three years options for interest only mortgages on residential purchases have been all but eliminated.

Where interest only mortgages are offered by lenders, the lender frequently asked you to provide supporting information on investment vehicles such as ISA’s. In many cases the value of your ISAs need to already be matching the size of your intended mortgage in order to be accepted as repayment vehicle – this is totally impractical.

Many borrowers have a need for a larger property when they are raising a family and intend to downsize later in life. This makes ‘sale of the mortgaged property’ a practical way to repay your capital.

The problem has been that lenders still offering this option require a very high amount of equity (40 or 50%) to be available in the purchase property. They can also have a high minimum property value which is prohibitive and impractical particularly for buyers that are not in the Home Counties area.

The good news is you can still obtain an interest only mortgage with ‘sale of the mortgaged property’ as your repayment vehicle at 75% loan to value.

Your minimum equity needs to be just £150,000 (£250,000 in the south-east).


Property value £600,000

Maximum lending with most lenders offering interest only option 50% = £300,000

Maximum lending available from our lenders on interest only 75% = £450,000

If you need an interest only mortgage call us now on 020 8979 9684

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