Interest-Only Mortgage Calculator

Calculate monthly payments and plan your repayment strategy

Typical range: 5-15 years
For investment/savings strategies

Interest-Only Mortgages Explained

How They Work

  • Pay only interest during initial period
  • Capital balance remains unchanged
  • Must repay full amount at end of term
  • Requires credible repayment strategy

Common Repayment Strategies

  • Investment portfolio (ISAs, pensions)
  • Regular savings plan
  • Property sale or downsizing
  • Inheritance or windfall

Benefits

  • Lower monthly payments initially
  • Potential for investment growth
  • Flexibility for irregular income
  • Tax advantages for buy-to-let

Risks

  • Investment may underperform
  • No guaranteed repayment vehicle
  • Higher interest rates typically
  • Capital balance never reduces

Related: Compare with our standard mortgage calculator and buy-to-let calculator.