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An investment backed mortgage is a type of interest only mortgage where you only pay the monthly interest repayments on the loan. The idea is to invest the money that you would have used to pay off the capital, usually in an ISA, pension or stock market linked savings plan.
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This type of deal carries a higher risk than standard capital and interest repayment mortgages. Your investments and savings need to cover the full amount of capital repayable at the end of the term. It’s worth speaking to a financial advisor or getting further information from our consultants before taking out a deal. You can also find out how much your monthly repayments could be using our calculator tool. As with all secured loans you need to ensure that you can keep up your payments or you may put your home at risk of repossession.
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