Call us
0333 202 7580
Our mortgage experts are available Monday to Friday from 7am to 8pm, and from 7am to 5pm at weekends. To maintain a quality service, we may monitor or record phone calls. Call charges.
Interest-only mortgages
How do they work?
Pay the mortgage interest each month without reducing the balance. You’ll need to have a realistic plan to repay the balance by the time the mortgage ends.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What is an interest-only mortgage?
It’s a mortgage where you only pay the interest on the amount you’ve borrowed each month, with interest charged on the full balance. You’ll need to pay back what you borrowed by the end of the mortgage term.
Can I get an interest-only mortgage?
- You’ll need to earn at least £75,000 a year if applying alone
- In joint applications, one of you must earn at least £75,000 a year, or your combined income must be at least £100,000
- We’ll tell you how much you need to provide as a deposit when you apply for an interest-only mortgage with us
- You’ll need to show us how you intend to repay the amount you borrow by the time the mortgage term ends
- You can’t rely on selling the property to provide this money just in case its value decreases
How do interest-only mortgages work?
Interest-only mortgages have lower monthly repayments than repayment mortgages, because you don’t pay back any of the amount you borrowed – you just pay the interest on the full balance every month. If you meet our eligibility requirements, you can apply for any of our residential, offset or buy-to-let mortgages on an interest-only basis. You need to check regularly that your repayment plan is on track.
Should I get advice about interest-only mortgages?
We recommend that you get independent financial advice about how you’re planning to repay your interest-only mortgage. You can search the Financial Services Register to find mortgage brokers that are authorised by the Financial Conduct Authority.
The Single Financial Guidance Body has examples of ways you can repay your interest-only mortgage – but we’ll need to agree your plan before we can approve your mortgage application.
Checking that your mortgage repayment plan is on track
Once we’ve approved your interest-only mortgage, it’s important to check that your strategy to repay the amount borrowed at the end of the mortgage term is still right for you.
To help you with this we will
- Write to you 12 months after you take out a mortgage, and periodically during the second half of the mortgage term to remind you how we can support you
- Have a review with you during your mortgage term – usually around the halfway point – to help you understand how your repayment plan is shaping up. This’ll give you plenty of time to adapt your strategy (if you need to) before the end of your term
Of course, if you have any concerns about your repayment plan, please call us on 0333 202 7580 and we’ll be happy to talk to you about your options. We’re open Monday to Sunday, between 7am and 8pm, excluding public holidays.
How to apply
Call us or visit a branch to make an appointment where we can discuss whether you’re eligible to apply for an interest-only mortgage.
0333 202 7580
Visit a branch
Find a branch near you that offers appointments with mortgage advisers and see when we’re open.
You may also be interested in
Barclays Simple Life Insurance
Protect your family
Have you thought about what would happen to your loved ones if you died or became terminally ill? With Barclays Simple Life Insurance, you can give them some financial security with a one-time payment – from £6 a month.
Help protect your family and get a £75 e-voucher
If you die, or become terminally ill – meaning you’re expected to live less than 12 months – Barclays Simple Life Insurance could give your loved ones some financial security. They’d get a cash lump sum to spend however they like – this could include paying for university or paying off debt.
If you get a quote for Barclays Simple Life Insurance between 1 June 2024 and 30 June 2025, and you go on to take out the policy before the quote expires, we’ll give you a £75 e-voucher to spend on a range of gifts including days out and vouchers for high-street brands.
Simply Thank You will email you between months five and six of your policy’s start date to tell you how to claim your reward. You’ll need to use your voucher by 30 June 2026
Life insurance for mortgage protection
Peace of mind for your home
Whether you’re a first-time buyer or only have a few years left on your mortgage, make sure your home is protected if you die or become terminally or critically ill.
Barclays Life Insurance is underwritten by Legal & General Assurance Society Limited. When you select ‘Get a quick quote’, we’ll take you to Legal & General’s website to complete your application securely. Terms, conditions, exclusions and eligibility criteria apply.
Help protect your family and get a £75 e-voucher
If you die, become terminally ill – meaning you’re expected to live less than 12 months – or you choose critical illness cover and are diagnosed with a specified critical illness, mortgage protection life insurance could give your loved ones some financial security. They’d get a cash lump sum to spend however they like – this could include paying towards your mortgage.
If you get a quote for mortgage protection life insurance between 1 June 2024 and 30 June 2025, and you go on to take out an insurance policy before the quote expires, we’ll give you a £75 e-voucher to spend on a range of gifts including days out and vouchers for high-street brands.
Simply Thank You will email you between months five and six of your policy’s start date to tell you how to claim your reward. You’ll need to use your voucher by 30 June 2026.
