Can I change my mortgage to interest-only?

Changing from a fixed-rate mortgage to an interest-only mortgage could be a way to lower your mortgage payments, but is it the right choice? Find out the pros and cons of switching to an interest-only deal.

Although the answer to this question may vary depending on your specific circumstances and the policies of your mortgage lender, it is generally possible to remortgage to an interest-only mortgage.

An interest-only mortgage is a type of loan where you only pay the interest charges each month, without making any contributions towards the capital amount borrowed. This means that at the end of the mortgage term, you’ll still owe the full amount borrowed, which is typically paid through the sale of the property or other means. 

Reasons you may choose to change your mortgage to interest-only:

  • To reduce your monthly mortgage payments: When only paying the interest, your monthly mortgage payments will be significantly lower compared to a repayment mortgage, which includes both interest and principal repayments. This can provide immediate relief if you’re facing financial constraints or looking to free up additional funds for other purposes.

  • If you’re anticipating a substantial increase in income or a financial windfall in the near future: When paying only the interest during the initial period, you can allocate funds elsewhere and invest in other ventures, with the expectation that you will be able to pay off the capital balance later.

The downsides to switching to an interest-only mortgage

  • You will not be building equity in your home through regular principal repayments: This means that the amount you still owe will be substantial and could potentially affect your ability to access affordable credit in the future or limit your options for remortgaging or moving to a new property.

  • You may find it challenging to repay the entire borrowed sum at the end of the mortgage term: You should have a robust repayment strategy in place to ensure you will be able to settle the outstanding balance when the time comes. Relying on the sale of your property to repay the mortgage carries its own risks, as property values can fluctuate, and there is no guarantee that it will be enough to cover the debt.

While an interest-only mortgage can save you money in the short term by reducing your monthly payments, you should carefully consider the long-term implications. 

Before making any decisions, you should speak to a mortgage adviser who can assess your individual circumstances and provide personalised guidance based on your financial goals. If you decide to go ahead with the switch to an interest-only mortgage a broker can help find you the right deal.


About Us

Learn more about and our transition from Trussle.

Better Price Promise

As part of our commitment to service the UK public with great mortgage rates and exceptional customer service, we’ve introduced the Better Price Promise.

Apply for a Mortgage

Join thousands of homeowners who got a mortgage, all without a single fee.

Important info & marketing claims

You may have to pay an early repayment charge to your existing lender if you remortgage. Your savings will depend on personal circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage.

*The savings figure of £656 is based on remortgage customers in April 2024. Read more on our marketing claims page.

We can't always guarantee we will be able to help you with your mortgage application depending on your credit history and circumstances.

Average mortgage decision and approval times are based on's historic data for lenders we submit applications to.

Tracker rates are identified after comparing over 12,000 mortgage products from over 100 mortgage lenders.

As of January 2023, has access to over 100 lenders. This number is subject to change.

For buy-to-let landlords, there's no guarantee that it will be possible to arrange continuous letting of a property, nor that rental income will be sufficient to meet the cost of the mortgage.