What banks / brokers offer part-and-part mortgages (part interest only, part repayment)?

SouthLondonUser

Do you know what banks offer so-called “part-and-part” mortgages, i.e. mortgages which are partly interest-only, and partly repayment, and through what brokers? (I understand banks tend to market them through brokers rather than online).

A broker has found me two products, from Barclays and Santander. The rates seem decent, but I would like to understand if I can find better rates in the market. My guess would be no, since this is a niche product, but you never know.

I haven’t found much searching online. Even the websites of Barclays and Santander aren’t clear on these products – those two banks clearly prefer to market these products through intermediaries rather than online.

I would probably have to speak to other brokers to access other part-and-part mortgages, but, before I do that, I’d like to understand, if possible, what other products are out there. Basically I wouldn’t want to spend a lot of time disclosing confidential information to many other brokers, if at the end of the day the products my broker has found are already among the best (i.e. lowest rates + sale of property as repayment method - see below).

Crucially, both banks allow ‘sale of the mortgaged property’ as a repayment method (which is something I’d need).
Halifax doesn’t: https://www.halifax.co.uk/mortgages/mortgage-information/repayment-methods/
Leeds building society: not clear, but rates are higher: http://www.leedsbuildingsociety.co.uk/knowledge-base/home-buyers/part-and-part-mortgages-explained/#


PS The Barclays and Santander products are almost identical: 1.59% fixed for 2 years, up to 75% LTV, max 25 years, max 50% LTV on the interest only part. The last point means that, if your deposit is £50k, you can borrow up to £100k as interest-only, and £50k on a repayment basis, for a total of £150k borrowed (75% LTV).
PPS Yes, I know what interest-only means, I know there are risks etc, I know this isn’t for everybody, etc.

kingstreet

This isn't a product as such.

You choose the fix, tracker etc which suits you and then the repayment method is capital & interest repayment, interest-only or part & part.

You would need to study the repayment method criteria of the lenders, rather than the product lists, to understand the requirements each has.

ACG

Both Barclays and Santander tend to be at the cheaper end of the market.

You could find yourself spending a lot of time trying to find a better deal and come up with nothing or finding something that is cheaper where you save a small amount each year. I am all for saving a few quid, but you need to think how much your time is worth (researching brokers and products) over just getting on with what you have even if it does end up costing you a couple of quid more each month.

SouthLondonUser

@ACG, I absolutely agree, that's why I said "my guess would be no" - but I felt it was worth a shot. I might maybe try contacting another broker but I won't dedicate days to the search of a slightly better rate.

If anyone can suggest specific banks/brokers it would be very useful, otherwise I'll contact one of the brokers that come up searching for part-and-part.

Thanks!

kingstreet

As mentioned, I would source for the product you want (ie five year fixed, no fee) then I would run down the list establishing the lenders offering the P&P option which suited your circumstances.