MORE ABOUT INTEREST ONLY MORTGAGES

With an interest only mortgage your monthly payment will only cover the interest charged by the lender and you will not pay off any capital within your monthly mortgage payment.

You are then expected to have a savings vehicle such as an ISA, endowment or pension to clear the outstanding mortgage balance at the end of the mortgage term. However....some lenders do not require you to have a savings vehicle as many people are quite happy to still owe a balance at the end of the mortgage which can be repaid by the sale of the house. Beware though as this can be dangerous if you do not have any other future financial plans. If you take out an Interest only mortgage and wishing to use an investment backed repayment vehicle, you should seek advise from a Independent Financial Adviser.

Let us help you make the right decision by calling our mortgage team on 01580 243293.