Are interest only mortgages still available?

[Caterpillar0]

A friend told me interest only mortgages on residential properties have been scrapped. I'm not sure this is correct as I think I have found some online. But can you get interest only if you're borrowing 90% of the value?
just wondering if anyone knows the answer to this

I thought they'd been scapped as well. You can sometimes switch to interest only if you already have a mortgage though.

Admitedly I've not looked in the last few months, but u didn't think you could get a 90% mortgage either.

Have you tried the comparison websites?

They are available. You generally need a minimum 30% deposit and to be borrowing less than £500,000.

They never went away or were scrapped. They just narrowed the goal posts so to speak.

Some banks will lend more than £500,000 on interest only if you have a deposit of more than 50%.

I don't think they are getting rid of them more that you have to prove you are working to pay off the capital as well as the interest such as an endowment etc.

Currently they just tell you that you should have a way to pay the capital off.

However, I don't know when it starts from.

I don't know about interest only mortgages but HSBC do 90% mortgages.

Oh. Apparently I am wrong. DH has just told me that you can get several at 80% loan to value (20% deposit) and for more than £500k. He said HSBC do one.

Most of them are 40% to 25% deposit though.

Takingthestairs. The OP asked about interest only mortgages. Usually require a higher deposit than standard repayment ones.

Lots of the big lenders aren't doing them any more, I know Nationwide aren't. Often they ask for a bigger deposit, but most importantly you have to have a realistic plan to pay if off. New rules come in in April next year, but most lenders have already changed their underwriting and will be looking for a realistic plan for paying off the capital. They will be far more likely to agree if you are currently on interest only and have a reasonable endowment or similar in place.

This all applies to buying your own house, it is far easier to get interest only for buy to let, as selling the house at the end of the mortgage term is a far more realistic option

The lenders on our panel only do up to 60% LTV on interest only if for residential purposes and you need to have a repayment vehicle like a second property unencumbered to sell, etc.

You can still get 90% mortgages, most lenders do them but you will mainly be looking at capital repayment.

BTL properties are a totally different kettle of fish.

thanks everyone. shame interest only isn't an option as it would really help us during the first year at the house, whilst setting up and i'm on reduced pay due to mat leave.

Clydesdale bank are introducing one which lasts up to 3 years then reverts to repayment. We were at bank yesterday and mortgage guy thinks they will be launched in next month. Max ltv is 80%, don't know rate yet. It's called low start mortgage
We are hoping to fund our extension this way while I'm on mat leave

arghhhh we can only put down 10%