Interest Only Mortgages | Mortgages | YBS
Interest only mortgages
Find out if an interest only mortgage is right for you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What is an interest only mortgage?
An interest only mortgage is one where your monthly payments only cover the interest charged on the amount you’ve borrowed.
This means your monthly payments may be less. But, it also means you don't pay off any of the original loan amount.
You’ll need be able to show that you have an acceptable plan to pay off the loan amount at the end of the mortgage term.
Already have a YBS mortgage? Go to interest only for existing customers.
This means your monthly payments may be less. But, it also means you don't pay off any of the original loan amount.
You’ll need be able to show that you have an acceptable plan to pay off the loan amount at the end of the mortgage term.
Already have a YBS mortgage? Go to interest only for existing customers.
Can I get an interest only mortgage?
You’ll need to
Have an acceptable plan in place to repay the loan at the end of the term. We call this a repayment strategy.
Provide evidence of your repayment strategy during the application process.
Provide this evidence again at least once during the mortgage term.
You can not
Borrow over a maximum of 75% loan to value.
Borrow for debt consolidation.
Borrow for a term that goes beyond your stated retirement age or age 70, whichever is sooner. If your income is not needed to make the loan affordable, you may be able to go beyond this age.
Repayment strategies
You’ll need to show that you an acceptable plan to pay off the loan at the end of your mortgage.
We call this plan a repayment strategy.
We call this plan a repayment strategy.
Repayment strategies we accept | Details for this strategy |
---|---|
Sale of Mortgage Property at the end of term |
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Sale of other UK property |
|
Pension Lump Sum | For defined contribution schemes and Self Invested Pension Plans (SIPP)
|
Savings |
You'll need to show your latest savings statement. |
Existing Endowments |
You'll need to show your latest endowment policy statement, dated in the last 12 months. |
General Investments |
For stocks and shares ISAs, Unit Trusts/OEIC, or for Investment Bonds, you'll need to show your latest statement. For stocks and shares ISAs you may need to show copies of share certificates or statements containing evidence of shareholdings and their valuation. |
How to get an interest only mortgage
Get a Decision in Principle (DIP)
Get a Decision in Principle (DIP) to find out how much you could borrow. Choose how to get a DIP below.
You may need a DIP to make an offer on a home.
You may need a DIP to make an offer on a home.
Apply for a mortgage
Complete a full application over the phone.
You cannot apply online for an interest only mortgage.
You cannot apply online for an interest only mortgage.
Get your mortgage offer
We'll value your home and check your credit history. Then we'll be in touch within 15 working days.
Complete
Once the legal work is complete, you’ll exchange contracts if you’re moving home. Or you’ll move to your new mortgage deal if you’re switching.
Get a Decision in Principle
You’ll need to call us for Decision in Principle about an interest only mortgage.
Get an instant decision over the phone
Valid for 90 days
Doesn’t affect your credit score
Talk to our mortgage specialists.
9am to 5pm Monday to Friday
9am to 1pm Saturday
Calls to 03 numbers are charged at the same rate as 01 or 02 numbers from all phones.
How much can I borrow?
Our borrowing calculator can tell you how much we may be able to lend to you.
Call us
Chat to our mortgage specialists about your options.
9am to 5pm Monday to Friday
9am to 1pm Saturday
Calls to 03 numbers are charged at the same rate as 01 or 02 numbers from all phones.