Interest only mortgage
With an interest only mortgage you pay off just the monthly interest, not the capital itself.
There are thousands of mortgage deals on offer in the UK, but First Mortgage has a whole of market choice, meaning that we can find you the best interest only mortgage deal available. Call us now on 0845 603 1525 to talk to one of our team.
What is an interest only mortgage?
Interest only mortgages allow you to repay the loan interest, leaving the borrowed amount to be paid off in full at the end of the loan term. The idea is to invest the money in an ISA, pension or other savings plan. That way you can afford to pay off the sum at the end of the loan period. Ideally, you will have some extra cash left over from your investments.
Is an interest only mortgage right for you?
There is a higher risk associated with interest only mortgages because they depend on you investing the money wisely and making enough returns to cover the capital. It’s important to ensure that payments to your chosen savings plan are kept up, or you run the risk of not being able to afford the payment on your home. As many investment schemes are linked to the stock market, there is no guarantee that you will make enough to pay off the overall sum.
If you’re a low earner, but expect your income to increase soon, you may want to arrange an interest only mortgage and then switch to a repayment mortgage at a later date. For other repayment methods, visit our repayment mortgage, investment backed, or part and part pages.
Find an interest only mortgage with First Mortgage
Call us on 0845 603 1525 for a free consultation with one of our friendly and experienced team. We are happy to help you choose the option that suits your needs.
Further mortgage and property reading:
UK Government Consumer Information | Financial Services Authority | Financial Ombudsman Service | BBC Your Money | Royal Institution of Chartered Surveyors | Council of Mortgage Lenders
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