Interest Only Mortgages

15/06/2021

With this method the initial loan amount remains the same throughout the term of the loan, while the monthly mortgage repayments only pay off the interest being charged on this amount.

For this reason, Interest Only mortgages are tied to investment in one of a number of different repayment vehicles, which, ideally, should cover the initial loan amount at the end of the loan term.

These repayment vehicles include endowment policies, personal pensions, ISAs etc.

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