Interest Only
An interest-only mortgage lets you pay just the interest on your loan each month, keeping monthly payments lower than a traditional repayment mortgage. However, the original loan amount (the capital) must be repaid in full at the end of the term.
This mortgage option offers short-term flexibility, but requires a strong long-term plan.
Why Some Borrowers Prefer Interest-Only
Interest-only mortgages appeal to certain types of borrowers, such as:
Property investors looking to maximise rental returns
Professionals with irregular or seasonal income
High earners with long-term investment strategies
Homeowners planning to downsize and repay the mortgage from a future sale.
Who Qualifies?
To qualify for an interest-only mortgage, you must have a repayment vehicle, a credible plan to repay the full loan at the end of the term. Lenders typically accept:
Stocks, shares, or ISAs
Endowment policies or pensions
Proceeds from selling another property
Certain investment portfolios
Each lender has specific criteria, and evidence of your plan will be required.
Why Us
At Zelus Mortgage and Finance, we specialise in navigating the complexities of interest-only mortgages. Our experienced advisers will:
Identify lenders suited to your repayment strategy
Explain your responsibilities and options clearly
Help structure a plan that meets lender and FCA standards
Support you through every stage of your mortgage journey
We ensure your mortgage is not only affordable now, but sustainable in the future.
Start your Journey
Thinking about an interest-only mortgage? We’ll help you make the right choice and ensure you’re fully prepared.