Best Interest-Only Remortgage 2026: Lenders & Criteria

Best Interest-Only Remortgage 2026

Interest-only remortgages keep monthly payments low by paying only the interest, with the capital repaid at the end via a credible strategy. This guide covers the best interest-only remortgage lenders in 2026, the criteria, and how to qualify.

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Quick Answer: Best Interest-Only Remortgage in 2026

Interest-only remortgages are offered by Halifax, Santander, Barclays, NatWest, Coventry, Leeds BS and others, typically up to 75% LTV (sometimes higher), requiring a credible repayment strategy and often a minimum income. Accepted strategies include sale of the property, investments/ISAs, pensions or other assets. Rates match standard residential at the same LTV — you're not charged more for interest-only. Part-and-part (some repayment, some interest-only) is a flexible middle ground. A broker matches your repayment plan to an accepting lender.

Rates last reviewed June 2026. Figures shown are indicative market ranges to help you compare — not live quotes or personalised offers. Mortgage rates change daily and depend on your circumstances, the lender's criteria and the Bank of England base rate. Check live rates for your profile →

How Interest-Only Remortgages Work

The structure and the lender's key concerns:

Lower monthly payments — you pay only the interest, so payments are significantly lower than a repayment mortgage, improving monthly cash flow.
Capital remains owing — the full balance is due at the end of the term, repaid via your strategy, so you build no equity through payments (only through price growth).
Repayment strategy required — lenders want evidence of a credible plan: sale of the property (with sufficient equity), investments, ISAs, pensions or other assets.
LTV and income limits — interest-only is usually capped around 75% LTV, often with a minimum income, as lenders manage the higher risk.

Accepted Repayment Strategies (2026)

Strategy	Lender view
Sale of the mortgaged property	Accepted with sufficient equity; downsizing plan
Investments / ISAs	Accepted with evidence of value and contributions
Pension lump sum	Accepted by many, with projections
Sale of other property/assets	Considered case by case

The strength of your repayment strategy largely determines which lenders will accept you and at what LTV. A clear, evidenced plan opens far more options.

How to Qualify for an Interest-Only Remortgage

To get the best outcome:

Document your repayment strategy — evidence of investments, pension projections, or an equity/downsizing plan reassures lenders.
Keep LTV sensible — most interest-only lending caps around 75%; lower LTV widens choice and reassures on the sale strategy.
Check minimum income — some lenders set income thresholds for interest-only.
Consider part-and-part — splitting between repayment and interest-only reduces risk and is more widely accepted, while still cutting payments.
Use a broker — they know which lenders accept your specific repayment strategy and LTV.

Best Alternatives and Related Options

Related routes to consider:

Part-and-part remortgage — a middle ground combining repayment and interest-only; see our part-and-part guide.
Retirement interest-only (RIO) — for older borrowers, interest-only with no fixed end date; see our RIO guide.
Offset remortgage — use savings to reduce interest, a flexible alternative for cash-rich borrowers.

Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.

Frequently Asked Questions

Can I remortgage to interest-only?

Yes — lenders including Halifax, Santander, Barclays, NatWest, Coventry and Leeds BS offer interest-only remortgages, typically up to 75% LTV (sometimes higher), provided you have a credible repayment strategy and often meet a minimum income. Accepted strategies include sale of the property, investments, ISAs or pensions. Rates match standard residential at the same LTV. A broker matches your repayment plan to an accepting lender.

What repayment strategies do interest-only lenders accept?

Common accepted strategies include sale of the mortgaged property (with sufficient equity, often via downsizing), investments and ISAs (with evidence of value and contributions), pension lump sums (with projections), and sale of other property or assets (case by case). The strength and clarity of your evidenced strategy largely determines which lenders accept you and at what LTV. A well-documented plan opens far more options.

Are interest-only remortgage rates higher?

No — interest-only remortgage rates match standard residential rates at the same LTV. You're not charged more for the interest-only structure itself. The difference is in criteria: lenders cap interest-only at a lower LTV (usually 75%), require a credible repayment strategy, and often set a minimum income, to manage the higher risk of the capital remaining outstanding. Once accepted, your rate is the same as a repayment borrower's.

What LTV can I get on an interest-only remortgage?

Interest-only remortgages are usually capped around 75% LTV, though some lenders go higher for strong cases or specific repayment strategies. A lower LTV widens your lender choice and reassures lenders relying on a sale strategy, since there's more equity buffer. Keeping your LTV well within the cap, with a clear repayment plan, gives you the best range of interest-only options.

What is a part-and-part remortgage?

A part-and-part remortgage splits your loan into a repayment portion (where you pay down capital) and an interest-only portion (where you pay only interest). This reduces your monthly payments compared with full repayment, while building some equity and lowering the capital left owing at the end — making it less risky and more widely accepted than full interest-only. It's a useful middle ground for managing cash flow.

Should I use a broker for an interest-only remortgage?

Yes — recommended. Lenders vary in which repayment strategies they accept, their LTV caps, and any minimum-income rules for interest-only, and these criteria aren't always clear-cut. A broker knows which lenders accept your specific strategy (sale, investments, pension) at your LTV, and places you with one likely to approve, avoiding wasted applications. They can also compare interest-only against part-and-part and offset alternatives.

Best Interest-Only Remortgage 2026

Quick Answer: Best Interest-Only Remortgage in 2026

How Interest-Only Remortgages Work

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Accepted Repayment Strategies (2026)

How to Qualify for an Interest-Only Remortgage

Best Alternatives and Related Options

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Frequently Asked Questions

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