In this article, we share the best interest-only mortgage deals on the market for both residential and buy-to-let mortgage borrowers. Interest-only mortgages allow borrowers to make lower monthly mortgage payments by covering only the interest; however, they will require a separate strategy to repay the principal loan amount at the end of the mortgage term.
What is an interest-only mortgage?
An interest-only mortgage is arranged on the basis that the borrower is only required to pay the interest that accrues against the mortgage loan each month. The mortgage loan itself remains the same, as the monthly payments do not include capital repayment. Instead, interest-only mortgages are repaid using lump sums either periodically or at the end of the mortgage term.
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How do interest-only mortgages work?
Interest-only mortgage borrowers do not repay the capital loan through monthly repayments; they have to agree on a repayment strategy and present this to the lender to approve. Repayment strategies can include using funds from investments, pensions or the sale of the property. There are usually specific qualifying criteria that may include loan-to-value limits - these are usually lower than for capital repayment mortgages.
You will find useful information in our article, 'How do interest-only mortgages work and can I get one?'.
Best interest-only mortgage deals UK
Since they are not the common choice of mortgage for most homebuyers, interest-only mortgage deals can be tricky to source; indeed, most mortgage comparison tools only search for capital repayment mortgage deals. However, our mortgage rate comparison tool offers you the option to toggle your choices to show interest-only mortgage deals - enter your search criteria and select this option to see deals from over 90 lenders. If you are looking for a particular lender and it does not appear in the search results, it may be that your criteria do not match the requirements. In this case, consider speaking to a mortgage specialist* who can help you work to get the deal you are looking for.
Best interest-only mortgage deals
The best interest rates available to borrowers change regularly, with lenders vying for the top spots in best buy tables. We have searched the market to list the best interest-only mortgage rates offered from over 90 lenders based on 2, 5 and 10 year fixed options as well as 2 and 5 year tracker options. We list the best interest rates on the market for residential and buy-to-let purchases. Interest-only mortgages are available for a range of loan-to-value ratios; however, there are usually more deals available to those borrowing based on lower LTVs. Essentially, this means you are likely to secure the best interest rates with a larger deposit. Below, we provide the best interest-only mortgage deals based on the most common LTV options, which include 60%, 80%, 90% and 95% mortgage deals.
We use the example of a mortgage used to purchase a property valued at £350,000 over 25 years. The rates below were correct at the time of writing this article.
Best 2-year fixed-rate interest-only mortgage deals at 60% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| HSBC | 4.42% | 6.24% | £1,016 |
| Halifax | 4.50% | 7.24% | £1,099 |
| Nationwide | 4.55% | 6.49% | £999 |
| Barclays | 4.60% | 5.74% | £1,014 |
| TSB Bank | 4.64% | 7.24% | £995 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 2-year fixed-rate interest-only mortgage deals at 80% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| HSBC | 4.69% | 6.24% | £1,016 |
| Halifax | 4.70% | 7.24% | £1,099 |
| TSB Bank | 4.74% | 7.24% | £995 |
| Barclays | 4.75% | 5.74% | £1,014 |
| Nationwide | 4.80% | 6.49% | £999 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 2-year fixed-rate interest-only mortgage deals at 90% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| HSBC | 4.96% | 6.24% | £1,016 |
| NatWest | 5.09% | 6.74% | £1,025 |
| The co-operative bank for intermediaries | 5.10% | 6.62% | £1,049 |
| Halifax | 5.12% | 7.24% | £1,099 |
| Virgin Money | 5.13% | 6.49% | £1,024 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 5-year fixed-rate interest-only mortgage deals at 60% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| HSBC | 4.58% | 6.24% | £1,016 |
| Barclays | 4.66% | 5.74% | £1,014 |
| NatWest | 4.70% | 6.74% | £1,525 |
| Halifax | 4.71% | 7.24% | £1,099 |
| Nationwide | 4.73% | 6.49% | £999 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 5-year fixed-rate interest-only mortgage deals at 80% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| HSBC | 4.70% | 6.24% | £1,016 |
| NatWest | 4.80% | 6.74% | £1,525 |
| Nationwide | 4.81% | 6.49% | £999 |
| Halifax | 4.81% | 7.24% | £1,099 |
| Virgin Money | 4.84% | 6.49% | £1,024 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 5-year fixed-rate interest-only mortgage deals at 90% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| HSBC | 4.84% | 6.24% | £1,016 |
| Barclays | 4.94% | 5.74% | £1,014 |
| Virgin Money | 4.99% | 6.49% | £1,020 |
| The co-operative bank for intermediaries | 5.03% | 6.62% | £1,049 |
| NatWest | 5.05% | 6.74% | £1,025 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 10-year fixed-rate interest-only mortgage deals at 60% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| Nationwide | 5.14% | 6.49% | £999 |
| Santander | 5.22% | 6.50% | £1,224 |
| Virgin Money | 5.24% | 6.49% | £25 |
| Halifax | 5.33% | 7.24% | £1,099 |
| HSBC | 5.47% | 6.24% | £999 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 10-year fixed-rate interest-only mortgage deals at 80% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| Nationwide | 5.29% | 6.49% | £999 |
| Perenna | 5.89% | 7.50% | £1,290 |
| Barclays | 5.96% | 5.96% | £1,114 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 10-year fixed-rate interest-only mortgage deals at 90% LTV
| Lender | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| Perenna | 6.08% | 7.50% | £1,290 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best tracker rate interest-only mortgage deals
A tracker rate interest-only mortgage is where the interest you pay fluctuates throughout your mortgage deal. This is because part of the interest you pay is variable, based on the Bank of England base rate. You may benefit from a tracker rate interest-only mortgage if rates fall, but you must consider the impact of rate rises, as these would have the opposite effect and increase your monthly payments.
Below we have listed the best 2 & 5 year tracker rates based on 60%, 80% and 90% loan-to-value mortgages, arranged on an interest-only basis over 25 years.
Best 2-year tracker rate interest-only mortgage deals
| Lender | LTV | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| Barclays | 60% | 3.96% | 5.74% | £1,114 |
| Halifax | 80% | 4.13% | 7.24% | £1,599 |
| Halifax | 90% | 4.57% | 7.24% | £1,599 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 5-year tracker rate interest-only mortgage deals
| Lender | LTV | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| Barclays | 60% | 4.35% | 5.74% | £1,114 |
| Barclays | 80% | 4.75% | 5.74% | £1,114 |
| Earl Shilton Building Society | 90% | 5.19% | 7.44% | £305 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best buy-to-let interest-only mortgage deals
If you are a landlord looking to remortgage your buy-to-let property, the best remortgage deals can be difficult to source. Below we have listed the best 2-year and 5-year fixed-rate and tracker rate remortgage deals for buy-to-let properties. We have assumed a property value of £350,000 and a mortgage term of 25 years to provide the best buy-to-let remortgage offers based on 60% and 80% LTV.
Best 2-year fixed-rate buy-to-let interest-only mortgage deals
| Lender | LTV | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| CHL Mortgages | 60% | 2.85% | 8.74% | £15,240 |
| Molo | 80% | 3.08% | 6.44% | £18,694 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 5-year fixed-rate buy-to-let interest-only mortgage deals
| Lender | LTV | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| The Mortgage Works | 60% | 4.36% | 8.24% | £6,724 |
| Molo | 80% | 4.83% | 6.44% | £20,095 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 2-year tracker rate buy-to-let interest-only mortgage deals
| Lender | LTV | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| CHL Mortgages | 60% | 3.85% | 8.74% | £11,040 |
| The Tipton & Coseley Building Society | 80% | 4.19% | 8.19% | £8,874 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
Best 5-year tracker rate buy-to-let interest-only mortgage deals
| Lender | LTV | Interest rate | Standard variable rate (SVR) after deal period ends | Lender's fee |
| Chorley Building Society | 60% | 4.59% | 8.14% | £1,849 |
| Molo | 80% | 5.99% | 6.44% | £8,894 |
Mortgage deals based on a property value of £350,000 and a mortgage term of 25 years. All interest rates are correct as of 7th May 2026
What to consider when choosing an interest-only mortgage
When considering an interest-only mortgage you should take the time to understand the alternatives and weigh up all of the pros and cons.
Pros and cons of an interest-only mortgage
Pros
- Your mortgage payments may be less as a result of only paying interest on the mortgage loan
- You may be able to use the money saved in monthly payments to grow your investments
- Investing the money you save could provide you with a greater return, meaning you could pay off your mortgage at the end of the term and still have money left over
- Buy-to-let borrowers could increase the yield from rental payments with a smaller mortgage payment
Cons
- The amount of interest that will accrue over the mortgage period will be greater than if the loan were being repaid using a repayment mortgage
- If your repayment strategy fails, you may not have enough money to repay the mortgage at the end of the term
- You may not be able to access as many competitive mortgage deals as you would for a repayment mortgage
- There is a greater risk for your property to fall into negative equity if house prices fall, because your mortgage loan amount does not reduce
How to find and secure the best interest-only mortgage deal
You can get started by searching the best current interest-only mortgage deals using our mortgage rate comparison tool - ensure you toggle the option to interest-only, as the tool will default to repayment mortgage deals unless you do.
Interest-only mortgages usually require an extra layer of preparation, as you will need to agree on a repayment strategy with your lender, and there are several acceptable options to choose from. Speaking with a mortgage broker will provide you with guidance as to which repayment strategies will be acceptable to the lender you wish to borrow from.
Lenders have different qualifying criteria and this will impact the amount that you can borrow and how you can repay the loan. While you might want an interest-only mortgage, it is possible that you wish to include flexibility to periodically make lump sum payments to repay the capital amount of your mortgage loan and some lenders may be able to facilitate this. The best way to select the right mortgage lender and deal is to speak with a mortgage professional who understands the qualifying criteria across a wide range of lenders.
Mortgage brokers will take the time to understand your requirements before searching the mortgage market on your behalf. This way, you can prevent any chance of your mortgage application being declined, which can impact your credit report. Additionally, you will receive guidance with your application, and your mortgage broker can also liaise with other parties, such as solicitors and estate agents, to progress your house purchase efficiently.
If you do not have a mortgage broker, you can get in touch with one using the online financial professionals' directory, Vouchedfor*, which lists mortgage brokers based on your area and what your needs are. You can choose your mortgage broker based on previous customers' reviews.
If you would prefer to arrange a consultation with a mortgage broker online or over the phone, you can do so by contacting Habito* - a free online mortgage broking service that provides you with access to over 90 lenders' mortgage deals. You will still receive guidance and support with selecting the best mortgage and the team will help process your application so that things go smoothly.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, Vouchedfor
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