You should know that interest will still accumulate on the mortgage from day one. This means you’ll pay more in interest over the term of the mortgage and your monthly payments will be slightly higher than if you had started paying in month one. If you can afford to make mortgage payments in the first three months, then another product will be more suitable for you.
Why choose a Delayed Start Mortgage?
- Ease into mortgage repayments – buying a home is exciting, but those first few months can leave you feeling stretched. Make the most of your three-month delayed repayment period to settle in and manage other extra moving costs that could pop up (think utility bills, unexpected repairs or even still having to pay rent on your previous place).
- More money to make your house a home – it means freeing up funds to spend on your dream décor, perfect sofa or garden transformation.
- Make homeownership more affordable from day one – the biggest hurdles for first-time buyers tend to be saving for a deposit and managing the upfront costs which come with buying a home. Our Delayed Start Mortgages could help you cope with the financial challenges of those crucial first few months.
- Works with Income Booster – you could use a Delayed Start Mortgage alongside our popular Income Booster scheme for extra support.
We joined industry expert Phil Spencer to explore the current challenges facing first-time buyers. They also discuss some of the solutions we offer to first-time buyers and how these could help you, including our Track Record mortgages, Income Booster and our Delayed Start Mortgages.
Get started today
Our Delayed Start Mortgages are a flexible way to ease into homeownership without needing to make immediate mortgage repayments.
You could lose your home if you don’t keep up your mortgage repayments. Subject to eligibility and lending criteria.
Next steps
1. Get a Decision in Principle (DIP) – it’s quick and easy to find out how much you may be able to borrow from us.
2. If your Decision in Principle is approved, we’ll arrange a mortgage advice appointment for you where we’ll recommend a suitable mortgage from our range – either over the phone or by our Video Appointment service.
3. Begin your application process and take a confident first step towards owning your first home.
Frequently asked questions
Your monthly mortgage repayments (instalments) are delayed for the first three months, but interest will still accumulate from day one.
The interest is calculated daily at your current mortgage interest rate and then added to your overall mortgage balance on the 1st of each month.
This does mean that you pay more in interest over the term of your mortgage, as your payments will include the interest accumulated over the first three months.
As interest is calculated daily from completion, this is added to your mortgage balance meaning in the first three months of your Delayed Start Mortgage, your mortgage balance increases and only starts to reduce when you start making mortgage repayments.
At least one applicant needs to be a first-time buyer. This means they can't ever have owned an interest in a residential property in the UK or abroad. This includes Buy to Let properties and any property that has been inherited, even if they've never lived there.
Eligibility is also subject to our lending policy, affordability checks and underwriting.
We do not lend in Northern Ireland.
Yes, you can overpay up to 10% of your original loan amount per year (including during the first three months) without having to pay an Early Repayment Charge.
Yes, our Delayed Start Mortgages may be used to buy new build homes.
Our Delayed Start Mortgages may be used alongside our Income Booster mortgage scheme (also known as, Joint Borrower / Sole Proprietor). However, it cannot be used with any other schemes. This includes but is not limited to Shared Ownership, First Homes (England), and Help to Buy (Wales).
