Are interest only mortgages harder to get.

If you've been told that interest-only mortgages are "dying out", you're not wrong exactly, but the full picture is more useful than the headline.

The interest-only market has shrunk dramatically over the last decade. Fewer than half a million pure interest-only mortgages remain in the UK, a fraction of what existed before lenders tightened their criteria in the 2010s. So it's fair to say interest-only is rarer than it used to be.

But rarer isn't the same as impossible.

What's actually changed

Lenders haven't pulled interest-only from the shelf, they've just changed who it's for and what they expect from you before they'll say yes.

In 2026, the bar looks like this:

• A larger deposit or equity stake, typically at least 25%.
• A credible, evidenced repayment strategy, not just a hope that house prices will rise.
• Higher income requirements than a comparable repayment mortgage.
• A clean credit history.

Lenders are also leaning less on assumed capital growth as a repayment plan and asking for something concrete instead: savings, investments, a second property, or a documented inheritance.

Who's still getting approved?

Interest-only hasn't disappeared; it's concentrated at the higher end of the market and among specific borrower types:

• Landlords with buy-to-let interest-only mortgages, still widely available
• Older borrowers using retirement interest-only (RIO) products
• High-net-worth or asset-backed borrowers who can evidence a strong exit plan
• Borrowers taking a part-and-part approach, paying some capital and some interest only, which has actually grown in popularity as a middle ground

So is it harder?

Yes, in the sense that lenders scrutinise applications more closely and expect more proof upfront. No, in the sense that if you have a genuine, well-documented repayment strategy, options are still very much open, and recent regulatory changes have actually simplified some of the advice process around remortgaging onto interest-only terms.

The real barrier for most people isn't availability; it's preparation.

Borrowers who walk in without a clear repayment plan get turned away.

Borrowers who've thought it through don't.

Talk to someone who knows the whole market

Because interest-only lending now varies so much by lender and circumstance, this isn't really a DIY decision.

A broker who can search the whole market will know exactly which lenders are still active in this space and what they'll want to see from you.

Speak to a Hello Mortgage adviser today for free, no-obligation advice on whether an interest-only mortgage could still work for you.

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