Interest Only Mortgages

    When you have an interest only mortgage, your monthly payment only covers the interest charged on your mortgage but won’t reduce the amount you have borrowed. This means you need to have a repayment plan in place to make sure you can afford to pay back your loan at the end of your mortgage term.

    Your monthly payments will be less than if you had a repayment mortgage. However you’ll pay interest on the full amount of your loan throughout the mortgage term, so it’ll cost you more in interest.  The overall cost of an interest only mortgage is higher than if you were on a repayment mortgage.


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