Interest Only Mortgages and Remortgages
Are you looking into interest only deals?
"Interest only mortgages" are designed to offer the lowest payment possible by not paying any of the balance of your loan off. Due to the lower payment, you may be able to stay within your budget more easily with interest only. Investments are used as a means to pay off the interest. If you come in to some money you can also normally choose to pay extra and pay off some of the loan.
Initially interest only products were introduced for people with seasonal or unpredictable incomes. People with low base salaries or slow business periods could get a home in keeping with their total annual income, whilst paying off their loan with their commission or good seasonal earnings. Recently, interest only options have been taken up by a growing number of people buying and remortgaging.
An example of how powerful this tool can be illustrates why this option has become popular: On a £250,000 mortgage at 6.000% for 30 years- Mortgage with interest = £1498.88 Interest Only payment at 6%= £1250.00 Total Monthly savings= £248.88 |
Your home may be at risk if you fail to keep up repayments on your mortgage.
We act as a marketing site referring your enquiries to a brokerage regulated by the financial services authority. We do not give any advice on interest only mortgages.