You could afford more than you think
Interest-only or part and part mortgages could help you buy a home you love, sooner.
A strategic first step into homeownership
Interest-only means you only pay the interest portion of your loan each month, so you get an affordability boost and lower monthly payments.
You can pay off the principal loan balance at the end of the mortgage term, or switch to a standard mortgage if it becomes affordable.
It can be your forever mortgage – or just a stepping stone.
Boost your budget!
Interest-only could boost what you can borrow by up to 15%. This could be the difference between staying stuck in the rental cycle and finally getting the keys to your own home.
Estimated affordability boost is based on a comparison between interest-only and repayment mortgage costs. Actual benefit will vary depending on rates, property, and loan size, and could be lower than 15%.
Compare monthly payments
With interest-only, your monthly payments will be lower – but you'll need to pay back your loan balance at the end of your term. You'll have to tell us how you'll do this when you apply.
Assumes a fixed 5.50% rate for the whole term, in practice your rate will change when your fixed period ends. You'll also need a repayment strategy in place to pay back the balance at the end of the term.
£300,000 mortgage · 30-year term · 5.50% interest rate
Total interest paid over the term: £434,404
Assumes a fixed 5.50% rate for the whole term, in practice your rate will change when your fixed period ends. You'll also need a repayment strategy in place to pay back the balance at the end of the term.
Split the difference with part and part
Get lower monthly payments and still build equity in your property. With part and part, a portion of your loan is interest-only and the rest is a standard repayment mortgage – so some of your monthly payments go toward your equity.
You'll still have to repay the full outstanding amount at the end of your term.
Repayment strategies
You'll have to repay your outstanding loan balance at the end of your mortgage term. When you apply for your mortgage, we'll ask you to tell us how you plan to repay it.
You could be able to switch to a standard repayment mortgage later on, where you repay your loan balance with each monthly payment.
Emily
35, nurse
I bought my first home through shared ownership, but the rent payments kept going up and staircasing was too expensive.
I wanted to own my home outright, but I couldn't afford a normal repayment mortgage.
With Gen H I was able to put some of that on interest-only. Now I own my house and don't have to pay rent on a home I own!
