New offering aims to revitalise interest-only market with competitive rates and borrower-friendly features
Longer-term fixed rate lender April Mortgages has unveiled a new range of residential interest-only mortgage products in response to a significant decline in the availability of such loans over the past decade.
The offering includes fixed rate options for five, 10, and 15 years, with rates starting at 5.25%, 5.25%, and 5.36%, respectively. Loan terms range from five to 40 years, with income multiples of up to six times for borrowers holding a minimum equity of £200,000, or £300,000 for properties in London.
The new product line allows for loan sizes between £50,000 and £1 million, with a maximum loan-to-value (LTV) ratio of 60%. Customers benefit from features such as uncapped overpayments and no early repayment charges (ERCs) when redeeming their loan in full from personal funds or moving house.
“The interest-only market has been crying out for modernisation for many years,” said Rachael Hunnisett (pictured), director at April Mortgages. “With the launch of our interest-only mortgages, we are bringing a much-maligned product back to life and ensuring it is fit-for-purpose for today’s market.”
Hunnisett noted the potential benefits for specific borrower groups, such as older homeowners with significant equity looking to transition into retirement. She emphasised that these products could provide greater financial flexibility and control in a challenging interest rate environment. The lender is also positioning the product as a tool for brokers to better support financially literate clients.
“In an era where financial literacy is rising, we’re championing a return to holistic advice — giving brokers and their clients access to the toolkit they need to support empowered, financially savvy consumers,” Hunnisett added.
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