Interest Only Mortgage Rates: Lender Rates and Criteria by LTV
Updated 23 October 2026
Interest only mortgage rates are not a separate price list. None of HSBC, Santander, Nationwide, TSB, NatWest or Barclays publishes a separate interest only rate: an interest only borrower takes the rate for their loan to value (LTV) band, so the real question is which lender will accept the interest only case at all. This page puts each lender's lowest fixed rates at the 60% and 75% LTV bands in one dated table, beside its interest only limits, minimum income and rules on selling the home to repay. Mortgage One is a whole of market mortgage adviser, and on an interest only case the lender's criteria decide the deal long before the rate does.
If you earn under £75,000 on your own, the threshold five of these lenders set for interest only, call 01202 155992 or contact Mortgage One.
Interest only mortgage rates checked on 23 October 2026
The lowest 5-year fix an interest only borrower can apply for is 4.94% at up to 60% LTV, from Santander with a £999 fee, and the lowest 2-year fix is HSBC's 4.96% on the same fee. At 75% LTV, the highest band most lenders allow on interest only, the lowest rates are 5.09% on a 5-year fix and 5.06% on a 2-year fix. Across the six lenders the 5-year fix at 60% averages 5.03%.
The first table shows each lender's lowest house purchase fixes at those two bands on its standard fee. The second sets out each lender's interest only criteria, and the third turns the rates into a monthly payment on £200,000.
| Lender | 2-year to 60% LTV | 2-year to 75% LTV | 5-year to 60% LTV | 5-year to 75% LTV | Fee |
|---|---|---|---|---|---|
| HSBC | 4.96% | 5.06% | 4.99% | 5.13% | £999 |
| Santander | 5.01% | 5.12% | 4.94% | 5.09% | £999 |
| Nationwide | 5.04% | 5.13% | 5.06% | 5.18% | £999 |
| TSB | 5.04% | 5.14% | 5.04% | 5.14% | £995 |
| NatWest | 5.09% | 5.26% | 5.00% | 5.13% | £995 |
| Barclays | 5.15% | 5.30% | 5.13% | 5.30% | £899 |
House purchase (home mover) rates on each lender's standard product fee, read from each lender's own rate source on 23 October 2026: HSBC's rates page, Santander's product comparison calculator (rates correct as at 21 October 2026), Nationwide's intermediary product guide with effect from 30 September 2026, TSB's intermediary rate guide with effect from 22 October 2026, NatWest's rate search and Barclays' product list. None of these lenders publishes a separate interest only rate: the rate is the one for your LTV band. NatWest's rate search returns its core range for interest only and leaves out its Online Exclusive deals. Nationwide's £999 deals are for loans up to £299,999, and above that its £1,499 deals apply at 4.99% and 5.08% on the 2-year and 5.01% and 5.13% on the 5-year. Barclays' figures exclude its Premier and Green ranges, HSBC's exclude Premier.
| Lender | Interest only up to | Part and part up to | Minimum income | Sale of the home as the plan | Term and age |
|---|---|---|---|---|---|
| Nationwide | 75% | 85% | £75,000 sole or £100,000 joint, basic income only | Yes, with £200,000 to £300,000 equity by region | 40 years, to age 70 |
| NatWest | 75% | 85% | £75,000 sole or £100,000 joint | Yes, for example with £200,000 equity | 35 years (30 above £500,000), to age 70 |
| Barclays | 75% | 85% | £75,000 sole or £100,000 joint | Yes, £200,000 to £300,000 equity up to 50% LTV, £500,000 above | 25 years |
| HSBC | 75% (65% on houses above £3 million) | 85% | £75,000 for one applicant, basic income | No | 25 years, to age 70 |
| TSB | 75% (60% on a sale of the home plan) | 85% | £75,000 sole or £100,000 joint | Yes, with £300,000 equity | 30 years, to age 70 |
| Santander* | 50%, or 75% on household income of £200,000 or more | 85% | None | Yes, with £300,000 equity | To age 70 |
| Accord | 75% | 85% | None | Yes, up to 60%, with £250,000 equity (£300,000 in London) | To age 71 or retirement |
| Coventry Building Society | 75% | Not offered | None | Yes, up to 75%, with £200,000 to £300,000 equity on every plan | 40 years |
Read from each lender's intermediary criteria pages on 23 October 2026. *Santander's intermediary site could not be read on 23 October 2026, so its row is from its criteria as last read on 27 August 2026. Part and part means a mortgage split between interest only and repayment, with the interest only share kept to the first column's limit. Accord says interest only is available on its offset range. Coventry Building Society sells interest only on its own range of fixed and offset products.
| Lender | 5-year fix to 60% LTV | Interest only a month | Repayment over 25 years | Difference a month |
|---|---|---|---|---|
| Santander | 4.94% | £823 | £1,162 | £339 |
| HSBC | 4.99% | £832 | £1,168 | £336 |
| NatWest | 5.00% | £833 | £1,169 | £336 |
| TSB | 5.04% | £840 | £1,174 | £334 |
| Nationwide | 5.06% | £843 | £1,176 | £333 |
| Barclays | 5.13% | £855 | £1,184 | £329 |
Interest only is the loan times the rate divided by 12. Repayment is a 25-year capital and interest mortgage at the same rate. Figures rounded to the nearest pound, with the product fee paid up front. On interest only the full £200,000 is still owed when the term ends.
Nationwide's product guide says interest only is available up to 75% LTV, or 85% part and part, across its home mover, first-time buyer and remortgage ranges, with no separate interest only product. NatWest's rate search returns the same rates for interest only as for repayment, but only on its core range: its Online Exclusive deals, such as the 4.95% 5-year fix at 60% LTV on a £1,495 fee, drop out. On £200,000 over five years that 0.05 point saving is £500, the same as the extra fee, so the exclusion costs an interest only borrower money only on a larger loan.
Every figure in the table is a house purchase rate. NatWest's remortgage rates sit above its purchase rates, 5.13% against 5.00% on the 5-year fix at 60% LTV, and our remortgage rates by lender table shows the other lenders' remortgage fixes on the same bands.
Are interest only mortgage rates higher than repayment rates?
No, not at the big lenders, because none of the six publishes a separate interest only rate. The rate is set by the product and the LTV band, and the repayment method changes the payment, not the price. What interest only changes is access: a lower LTV cap, a minimum income at most banks, and a repayment plan the lender has to accept before it will issue an offer.
Barclays, HSBC and Coventry Building Society check affordability as if the loan were on repayment, and Barclays caps interest only borrowing at 5 times income, so at those lenders a lower monthly payment on interest only does not raise the amount on offer. Nationwide assesses some applications on interest only affordability, and its decision in principle shows which.
How much is a £200,000 interest only mortgage a month?
At 5.00%, NatWest's 5-year fix at 60% LTV, £200,000 on interest only costs £833 a month against £1,169 on a 25-year repayment mortgage, £336 a month less. Across the six lenders' 5-year fixes the interest only payment runs from £823 at Santander's 4.94% to £855 at Barclays' 5.13%.
Over a five-year fix at 5.00%, interest only payments total £50,000 and the balance is still £200,000 at the end. Repayment costs £70,151 over the same five years and brings the balance down to about £177,160. Over 25 years at the same rate, interest only costs £250,000 in interest and leaves the £200,000 to repay, where repayment costs about £150,754 in interest in total. Our mortgage repayment calculator runs both bases on any loan and rate.
The lowest rate is not always open to interest only
Santander has the lowest 5-year fix in the table, but on its criteria as last read on 27 August 2026 it lends on interest only above 50% LTV only where household income is £200,000 or more, so most interest only borrowers can take its 4.94% only with at least half the property value as deposit or equity. It sets no minimum income below that 50% line. Our Santander mortgage rates page carries its full range.
HSBC has the lowest 2-year fix, and it lends on interest only to 75% LTV with a minimum income of £75,000 for one applicant, with an employed applicant's income counted on basic pay and fixed allowances only. It does not accept the sale of the home as the repayment plan, so an HSBC interest only case needs savings, investments, an endowment, a stocks and shares ISA or another property behind it. Our HSBC mortgage rates page shows the rest of its range.
Nationwide, NatWest, Barclays and TSB all want £75,000 for a sole applicant or £100,000 joint. Nationwide counts primary basic income only, and its £999 deals stop at a loan of £299,999. Accord and Coventry Building Society set no minimum income for interest only and assess the case on standard affordability, which is why a case below the £75,000 line goes to them first.
To find out which of these lenders would accept your income, deposit and repayment plan before any credit search, with a free initial consultation first, call 01202 155992 or contact Mortgage One.
Selling the house as the repayment plan
Most lenders now accept the sale of the mortgaged home as the plan to repay, provided enough equity is left over to buy somewhere else. Nationwide asks for £300,000 in Greater London and the outer metropolitan area, £250,000 in the outer South East and £200,000 elsewhere, and a sale of the home cannot be combined with any other plan. Barclays asks for £200,000 to £300,000 by region up to 50% LTV and £500,000 everywhere above it, where the term must also end by age 70.
TSB lends to 60% LTV on a sale of the home plan with £300,000 of equity. Accord lends to 60% with £250,000 of equity, or £300,000 in London. Coventry Building Society lends to 75% and asks for £200,000 to £300,000 of equity whatever the repayment plan. NatWest gives £200,000 of equity at up to 75% as its example, and HSBC does not accept the plan at all.
Part and part, buy-to-let and retirement interest only
Part and part splits the loan, with one share on interest only and the rest on repayment. Nationwide, NatWest, Barclays, HSBC, TSB, Santander and Accord lend to 85% LTV this way with the interest only share capped at 75% or below, and Coventry Building Society does not offer it. Halifax, on its criteria as last read on 27 August 2026, lends to 75% on interest only and 85% part and part. Our guide to interest-only mortgages explains how repayment plans are valued.
This page covers residential mortgages. Buy-to-let is mostly written on interest only and priced on rent, and those rates are on our buy-to-let mortgage rates page. Borrowers in or near retirement who want interest only without an end date are looking at a retirement interest only mortgage, which our guide to mortgages for pensioners covers. Bank Rate is 3.75%, and the next decision is due on 5 November 2026. Figures as of 23 October 2026.
For your interest only case placed with the lender whose income, LTV and repayment rules it meets, then priced against the rest of the market, call 01202 155992 or contact Mortgage One.
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The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you'd like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.
FAQs
1. What are current interest only mortgage rates? At our 23 October 2026 check, the lowest 5-year fix for an interest only borrower at up to 60% LTV was 4.94% at Santander and the lowest 2-year fix was 4.96% at HSBC, both with a £999 fee. At 75% LTV the lowest rates were 5.09% on a 5-year fix and 5.06% on a 2-year fix.
2. How much is a £200,000 interest only mortgage a month? About £833 a month at 5.00%, against £1,169 on a 25-year repayment mortgage at the same rate. At the six lenders' 5-year fixes checked on 23 October 2026 the interest only payment ran from £823 to £855 a month, with the full £200,000 still owed at the end of the term.
3. Are interest only mortgage rates higher than repayment rates? Not at the big lenders. HSBC, Santander, Nationwide, TSB, NatWest and Barclays publish no separate interest only rate, so an interest only borrower takes the rate for their LTV band. NatWest leaves its Online Exclusive deals out of interest only, so an interest only borrower there takes its core range.
4. Are banks still offering interest only mortgages? Yes. Nationwide, NatWest, Barclays, HSBC, TSB, Santander and Halifax all lend on interest only, as do Accord and Coventry Building Society, mostly up to 75% LTV and with a repayment plan the lender accepts.
5. What income do you need for an interest only mortgage? Nationwide, NatWest, Barclays and TSB want £75,000 for a sole applicant or £100,000 joint, and HSBC wants one applicant on £75,000. Accord, Coventry Building Society and Santander set no minimum income for interest only, though Santander needs household income of £200,000 to lend above 50% LTV.
6. What is the maximum LTV on an interest only mortgage? Usually 75% on the interest only part, or 85% on a part and part mortgage with the rest on repayment. Santander lends above 50% on interest only only where household income is £200,000 or more, and HSBC caps houses above £3 million at 65%.
7. Can I use the sale of my home to repay an interest only mortgage? Yes at most lenders, if enough equity is left. Nationwide asks for £200,000 to £300,000 by region, TSB and Santander £300,000, and Accord £250,000 outside London. HSBC does not accept the sale of the home as a repayment plan.
8. Is a part interest only, part repayment mortgage possible? Yes. Most big lenders allow part and part up to 85% LTV, with the interest only share capped at 75%. Coventry Building Society does not offer part and part on new lending.