Interest Only Mortgage Broker Northampton

Our Process

An interest-only mortgage is a type of mortgage where you only pay the interest every month, rather than the actual mortgage. However, you still owe the full amount of the mortgage at the end of the repayment period. This is what your repayment vehicle is for.

Our experienced interest-only mortgage brokers in Northampton will discuss your mortgage needs with you. We can advise you on the whole of market offers, as we are not bound to a specific lender. We can even guide you through the eligibility process if you are not familiar with mortgages as we understand how important it is for you to get onto the property ladder. We will do everything to ensure you find the right mortgage deal that will save you the most amount of money. Our process involves:

Booking the initial consultation: This is where our expert mortgage brokers in Northampton will discuss your situation to understand your requirements.

Mortgage agreement in principle: We can get this arranged for you to increase your chances of getting your ideal property. Leave it to us and we will get this sorted!

Application stage: Once you are ready, we will deal with all the necessary paperwork to get you started on your application journey.

Review: We can help you find a mortgage solution that fits your current situation and offer yearly evaluations to see if you qualify for a more favourable option.

Get in contact with us today for expert interest-only mortgage advice. Get a Free Mortgage Consultation

Who Can an Interest-Only Mortgage Benefit?

This type of mortgage is suitable for many different borrowers. These include first-time buyers, buy-to-let investors and those looking for a remortgage.

It is particularly useful for those who are looking to rent a property, as interest-only mortgages can be a more affordable option.

Also, it has always been popular with people who have struggled with the affordability of taking out a mortgage and want to keep their monthly repayments down.

The primary concern from many lenders is the question of how borrowers will pay back the loan at the end of the mortgage term. In the past, it was common for borrowers to take out an endowment policy to repay the loan, but these under-performed and people had to extend their term and keep paying their mortgage for longer than expected.

The capital still needs to be repaid at the end of the mortgage term, and this would usually come from savings or an investment policy. However, if borrowers did not have these in place they would have to sell their home to pay the loan.

The Right Mortgage For You

Before 2010, when interest-only mortgages were extremely simple to take out, lenders did not want to see any proof that borrowers were taking out insurance policies or savings plans in order to pay off the amount borrowed at the end of the term. This contributed to the ‘Credit Crunch’ as people were taking out loans that ultimately could not be repaid.

The market is a very different place today, and now there are many more checks to ensure that borrowers will be able to pay back the amount borrowed at the end of the mortgage term. That's why seeking support from an interest-only mortgage broker, like us, is invaluable.

At Derngate Wealth Management, our interest-only mortgage brokers in Northampton can help you find the right product, and talk to you about putting in place a financial plan to repay the loan.

Why Derngate Wealth?

Derngate Wealth is a qualified mortgage broker in Northampton with your best interest at heart. We understand the complexities when dealing with mortgages, which is why we offer jargon-free and easy to understand advice. To ensure that your requirements are fully understood and met, we provide a tailored service with your precise needs at hand. Trust us to offer you trusted and tailored mortgage advice so that you can track down the deal that will work for you!

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What is the Difference Between an Interest-Only Mortgage and a Repayment Mortgage?

Repayment Mortgage: Often referred to as capital mortgages, this option allows you to pay back some of the interest on your loan as well as the loan amount itself. This will make your monthly payments higher, however by the end of the mortgage term, everything you owe will be paid off.

Interest-Only Mortgage: With this type of mortgage, you will only be paying the interest on the loan, meaning that the monthly payments will be lower than a repayment mortgage. Also, at the end of the mortgage term, you will still owe the full loan amount. Therefore, you will need a repayment plan to pay back the capital.

Quick Interest-Only Mortgage Enquiry

Your home may be repossessed if you do not keep up repayments on your mortgage.