Interest-only mortgages
How interest-only mortgages work, who they can suit and what you need to plan for.
With an interest-only mortgage, your monthly payments cover the interest but not the amount you borrowed. That means the full loan is still owed at the end of the term.
A repayment plan is essential
Lenders will want to see a credible plan for repaying the loan, such as investments, the sale of another property or other assets. It’s important to review that plan regularly to make sure it stays on track.
Part and part
Some borrowers choose a mix: part of the mortgage on repayment and part on interest-only. This can balance monthly costs with steadily reducing what you owe.
We can talk you through whether interest-only could be appropriate for you and what the alternatives are.
Your property may be repossessed if you do not keep up repayments on your mortgage.
