Interest Only Mortgages
We recommend that you compare at least three different interest only mortgage offers
Interest only mortgage
- payment only of interest to your lender, with an additional payment into an investment fund (usually an ISA, endowment or pension).
- the fund is expected to grow to repay the loan at the end of the term.
- disadvantage : growth of the fund is not guaranteed - it depends upon how well the investment performs. If it grows fast, you will easily be able to repay the loan, perhaps earlier than expected or have an additional lump sum. But, if the investment under-performs there may be a shortfall at the end of the policy term.
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