Interest Only Mortgages
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Haven Mortgages > Interest Only Mortgages
An interest-only mortgage can be a strategic option for those seeking lower monthly payments and greater financial flexibility. You’ll only pay the interest each month, with the full loan amount due at the end of the term. This approach is well-suited to high earners, experienced investors, or those with a clear repayment strategy—such as proceeds from property sales or investment portfolios.
At Haven Mortgages, we work closely with you to ensure you have a realistic and approved plan in place to repay the loan when the time comes.
Who Can Apply for an Interest-Only Mortgage?
While previously limited to niche borrowers, interest-only mortgages are now more accessible. Some lenders set minimum income thresholds (typically between £75,000–£100,000), while others prioritise equity, assets, or proven repayment strategies.
Our advisers at Haven Mortgages will evaluate your financial profile and match you with suitable lenders, helping you secure a deal that aligns with both your short-term needs and long-term goals.
Effective Repayment Plans
Because the mortgage balance remains unchanged until the end of the term, having a clear repayment plan is essential. Lenders generally accept several repayment strategies, including:
=> Sale of Property
Using the proceeds from selling the property at the end of the term.
=> Investment Returns
Paying off the loan via ISAs, pension pots, or other investments.
=> Rental Income or Property Equity
Utilising profits or capital from buy-to-let properties.
=> One-Off Lump Sums
Repayment through inheritance, bonuses, or business income.
At Haven, we ensure your strategy is robust, lender-approved, and tailored to your financial vision.
Ongoing Guidance to Keep You on Track
An interest-only mortgage provides flexibility, but regular reviews are vital to ensure your repayment plan remains viable. Our expert advisers provide continuous support, helping you adapt your approach as your financial situation evolves.
=>Lower Monthly Payments
Pay only the interest each month, reducing your monthly outgoings and freeing up cash for other investments or financial goals.
=>Tailored for High Earners & Investors
Ideal for individuals with strong income, property assets, or clear repayment strategies such as property sale or investment growth.
=>Flexible Repayment Strategies
We help you structure approved repayment plans—including ISAs, pension pots, buy-to-let equity, or lump-sum payments—to settle the loan at term end.
=>Expanded Lending Criteria
Access to lenders who offer interest-only mortgages with varying income and equity requirements, from £75,000+ annual salary to asset-based assessments.
=>Whole-of-Market Access
Benefit from a wide range of interest-only mortgage products sourced across the market, tailored to your unique financial profile.
=> Ongoing Expert Support
Our advisers provide continuous guidance and reviews, ensuring your repayment strategy remains aligned with your financial goals.
Speak to a Specialist Today
Thinking about an interest-only mortgage? Haven Mortgages offers clear, expert advice to help you choose the right product and create a sustainable repayment plan for your future.
- End-to-End Guidance
- Personalized Mortgage Matching
- Expert Insight on Mortgage Types
- Maximising Affordability
- First-Time Buyer Perks
- Fast, Hassle-Free Process
With an interest-only mortgage, you only pay the interest each month — not the loan itself. That means your monthly payments are lower, but you’ll need a plan to repay the full loan at the end of the term. It can be a smart option in the right circumstances — especially if you have investments, savings, or a plan to sell the property later.
Lower monthly payments are the main appeal. It can help with cash flow, especially for high earners, landlords, or people with irregular income. It’s not for everyone, but for the right buyer, it can offer flexibility without straining your monthly budget.
You’ll need a clear repayment plan — such as selling the property, using investments, savings, or switching to a repayment mortgage later. We’ll help you create a plan that lenders trust — and that works for you long-term.
It’s possible, but it’s not very common. Lenders usually offer interest-only to experienced buyers with strong finances and a solid repayment strategy. But don’t rule it out — if it’s the right fit for your situation, we’ll help you explore it.
Yes — because you're not reducing the loan balance during the term, you’ll still owe the full amount later. If your repayment plan doesn’t work out, you could need to sell the property or refinance. That’s why we take time to make sure it’s the right fit — and help you build a realistic plan from day one.
Yes, many people do this once their financial situation changes or becomes more stable. Lenders may allow you to switch part or all of your mortgage to a repayment plan. We’ll be with you for the journey, helping you adjust your mortgage as life changes.
Typically, lenders ask for a larger deposit — often 25% or more — because interest-only mortgages carry more risk for them. Don’t worry — we’ll help you find the most suitable lenders and walk you through what they require.
Yes — in fact, many landlords use interest-only mortgages. They keep monthly costs low and allow you to focus on generating rental income. If you're an investor or building a property portfolio, it might be worth considering.
At Haven Mortgages Ltd, we build lasting trust by combining creative thinking with tailored mortgage and protection solutions that meet each client’s unique needs.
