How Do I Remortgage to Interest Only?
You need 50%+ equity, a credible repayment strategy for the capital, and to pass affordability. Fewer lenders offer interest only - use a broker to find options.
Remortgaging to interest only means your monthly payments only cover the interest, not the capital. The full loan balance remains outstanding until the term ends, when you must repay it. To qualify, lenders typically require: low LTV (usually 50% or less, meaning 50%+ equity), a documented repayment strategy showing how you'll repay the capital (property sale, investments, pension, etc.), and passing affordability assessments. Interest only can suit buy-to-let investors, those with genuine plans to sell/downsize, or borrowers needing temporary payment reduction. However, it means paying more interest overall and requires discipline about the repayment strategy.
Your home may be repossessed if you do not keep up repayments on your mortgage. With interest only, you must have a plan to repay the capital at term end.
Key Points
- 1Lower monthly payments (interest only, no capital)
- 2Full capital remains outstanding until term end
- 3Need 50%+ equity for most lenders
- 4Must have credible repayment strategy
- 5Part-and-part (hybrid) options available
- 6Fewer lender options than repayment mortgages
Eligibility Criteria
- 50% LTV or lower (50%+ equity)
- Documented repayment strategy
- Strategy must be credible and verifiable
- Pass standard affordability checks
- Some lenders have minimum income requirements
Typical Timeframe
An interest only remortgage takes the same 4-6 weeks as a standard remortgage. You'll need to document your repayment strategy as part of the application. Start 3-6 months before your current deal ends to ensure smooth transition.
Next Steps
- 1Calculate your current equity/LTV
- 2Identify your repayment strategy
- 3Gather evidence of repayment strategy (investments, etc.)
- 4Speak to a broker about lender options
- 5Consider part-and-part as alternative
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Remortgage HubContent reviewed: 13 January 2026