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HTG Mortgages

HTG Mortgages

Interest-Only Mortgages

Last Updated: August 2026

Featured in The Telegraph • Daily Mail • The Times • Sky News

Interest-only can cut your monthly payments significantly, provided you meet the criteria and have a credible plan to repay the capital. We’ll explain exactly how lenders assess interest-only, which of the 120+ lenders we compare could say yes, and whether it truly suits your plans.

Meaningfully lower monthly payments than a repayment mortgage, with the capital repaid at the end of the term

Speak directly to Harry, not a call centre, no passing you around

Some banks want £75k+ incomes for interest-only. We know the lenders with no minimum at all

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As featured in…

Harry Goodliffe, director and FCA-authorised mortgage advisor at HTG Mortgages, at his desk

Meet your Advisor

Harry Goodliffe

  • FCA Authorised
  • Director & Mortgage Advisor

“I‘m not about confusing jargon or passing you from person to person. From our first chat to the day you get the keys, you’ll deal directly with me. I‘ll keep you updated, answer any burning questions, and do everything I can to make the whole process as stress-free as possible.”

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The interest-only mortgage process

1

Step 1

First Chat

Contact us to talk through your income, equity and repayment plan. We’ll give you an honest view of whether interest-only fits, and what it will really cost.

2

Step 2

Research

We’ll match your repayment strategy and loan-to-value to the lenders whose interest-only criteria you meet, including part-and-part options.

3

Step 3

Application

Once you’ve chosen a mortgage, we’ll handle the application process, liaising with the lender on your behalf.

4

Step 4

Completion

After approval, we’ll ensure a smooth transition to your new mortgage, keeping you informed at every step.

About

Our approach.

Why choose HTG Mortgages?

With an interest-only mortgage you pay just the interest each month and repay the capital at the end of the term, so lenders need to see a credible repayment strategy from day one. The main reasons people choose interest-only include:

Lower Monthly Payments

Paying interest alone keeps monthly costs down, freeing up cash flow for investments, business, family priorities or overpayments when it suits you.

Repayment Strategies

Lenders accept sale of the property (with minimum equity), pension lump sums, ISAs and investments, or the sale of another property. We’ll evidence yours properly.

Part-and-Part

Split your mortgage between repayment and interest-only to balance lower monthly payments against a smaller lump sum at the end of the term.

Retirement Interest-Only

RIO mortgages for older borrowers have no fixed end date. The loan is repaid when you sell, move into long-term care or pass away, preserving more equity than a lifetime mortgage.

Speak to an expert

Around 600,000 UK mortgages, worth £139 billion, are still fully or partly interest-only according to UK Finance, and thousands reach the end of their term every year. Whether you’re taking a new interest-only deal, switching an existing mortgage, or facing a maturing loan without a plan, the earlier we talk, the more options you’ll have.

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How HTG Mortgages Can Help

At HTG Mortgages, we deal with interest-only criteria every week, and we’ll tell you straight if a repayment or part-and-part structure would serve you better. Here’s how we can assist you:

  • Criteria Matching: Several big banks want incomes of £75,000+ for interest-only, but other lenders have no minimum income at all. We know exactly who fits your income, equity and repayment strategy.
  • Maturing Interest-Only Loans: Term ending with capital still to repay? We’ll compare remortgaging, term extensions, part-and-part, retirement interest-only and downsizing routes before it becomes urgent.
  • Landlords Welcome: Interest-only is the standard structure for buy-to-let. We arrange both, and can review your whole portfolio while we’re at it.
  • Honest, Whole-of-Market Advice: Interest-only costs more over the full term because the balance never falls, so we’ll show you the true comparison across 120+ lenders before you decide.

When to consider interest-only

Interest-only suits some situations brilliantly and others not at all. It’s worth a conversation if:

  • You want lower monthly payments and have a credible plan to repay the capital.
  • You have significant equity and could downsize at the end of the term.
  • You’re a landlord structuring buy-to-let borrowing.
  • You’re an older borrower weighing retirement interest-only against equity release.
  • Your existing interest-only mortgage is approaching the end of its term.

Assessed properly, with the right lender and a solid repayment strategy, interest-only can be a powerful way to manage your money in Hampshire, Dorset and beyond. Remember: your home may be repossessed if you do not keep up repayments on your mortgage, and you remain responsible for repaying the capital at the end of the term.

Related: Retirement Interest-Only Mortgages.

Why use HTG’s mortgage services?

Available 24/7, so we are always there to help when you need us

We are an independently owned, whole-of-market mortgage broker offering first-charge mortgages

We provide unrivalled customer service, ensuring that you get the care you deserve

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Let’s get your mortgage sorted

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Frequently Asked Questions

Have another question?

Your monthly payment covers only the interest on the loan, so it’s much lower than a repayment mortgage, but the amount you borrowed doesn’t reduce, and the full capital is due at the end of the term. Since 2014, FCA rules require lenders to see a credible repayment strategy at the outset and to check on it at least once during the term, so interest-only is now a carefully underwritten product rather than a default option.

Monthly payments are typically several hundred pounds lower on a mid-sized loan, because you’re not repaying capital each month. The trade-off is total cost: over the full term you pay more interest overall, since the balance never falls. We’ll show you the exact comparison for your loan size, term and rate, including part-and-part options that sit between the two.

It depends entirely on the lender. Several high-street banks ask for £75,000 of sole income (or around £100,000 joint) before they’ll consider interest-only, but other well-known lenders have no minimum income requirement at all and simply assess normal affordability. This is one of the areas where whole-of-market advice makes the biggest difference.

Commonly: sale of the mortgaged property (where you hold enough equity; minimums of roughly £200,000–£300,000 are typical, varying by lender and region), sale of another property, a pension lump sum, stocks and shares ISAs or other investments, and endowments. Most lenders want the strategy already in place, usually held for 12 months or more. An expected inheritance generally doesn’t count.

Temporarily, often yes: under the Mortgage Charter, borrowers who are up to date on payments can usually switch to interest-only for six months without an affordability check and without it affecting their credit file, though most lenders treat this as a one-off, and payments rise afterwards. A permanent switch is a full application against interest-only criteria, which we can arrange and compare across the market.

A mortgage split between repayment and interest-only. Part of the balance reduces each month while the rest runs interest-only, cutting your monthly cost while shrinking the lump sum due at the end. Many lenders will go to a higher overall loan-to-value on part-and-part than on pure interest-only, which can make it the more achievable structure.

A mortgage for older borrowers, typically 55 and over, with no fixed end date. You pay the interest each month and the loan is repaid when you sell, move into long-term care or pass away. Because interest is paid rather than rolled up, a RIO usually preserves far more equity than a lifetime mortgage, and affordability is assessed on pension and retirement income.

Don’t wait: the earlier you act, the more options you have. Realistic routes include remortgaging to a new deal, extending the term, switching to repayment or part-and-part, a retirement interest-only mortgage, downsizing, or equity release as a last resort. Lenders are required to treat maturing interest-only borrowers fairly, and we can usually find a workable path one to two years before the term ends.

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