Interest Only
You only pay the interest on a mortgage amount monthly You do not pay towards the capital borrowed monthly The capital loan amount is paid back in full at the end of the mortgage term agreed. Your monthly payments will be lower than a repayment mortgage If you cannot pay the full loan amount at the end of the agreed term you may need to sell the property to cover what you owe Paying back interest on the whole loan, rather than a repayment option of the loan amount which decreases your debt, you will end up paying more over time with an interest- only deal Pro’s This type of mortgage is great for people who wish to have lower monthly payments but know long term they will have the funds to pay off the mortgage in term agreed.
