Interest Only

How does it work?

Your monthly payments represent only the interest due to the lender, and do not include repayment of capital. Your total loan must be repaid at the end of the mortgage term. You therefore need to arrange additional investments which will generate sufficient capital to repay the loan.

ADVANTAGES:

1. You can choose from a variety of investments, some of which have tax advantages.
2. Should you move or arrange a remortgage, your investment can usually be reallocated to the new mortgage.
3. Normally cheaper than repayment mortgages.

DISADVANTAGES:

1. Unlike a repayment mortgage, the amount of debt outstanding does not reduce over time
2. There is no guarantee that the investments chosen will grow sufficiently to repay your loan.

Your home may be repossessed if you do not keep up repayments on your mortgage.

For mortgage advice you can choose how we are paid:

For example, you can pay by a fee of 0.5% of the loan amount and we will refund to you any commission we receive from the mortgage lender, or you can pay an advice fee of £250.00 and we will receive commission from the lender for placing the mortgage. We will discuss payment options with you and advise the actual amount payable before we begin to provide our services.