An ideal mortgage for home buyers who want to pay a low premium for a duration of time. An interest only mortgage is when the home buyer only pays off the interest of the property not the debt itself. The debt itself is paid off once the interest has been paid off.

If you are looking to buy to let a property then it may be a good idea to take this option as the monthly repayments would be less. The rent bought in would very easily cover the repayments.

It is ideal for many first time buyers who can only afford to pay low premiums.

If the ISA's or endowments policies which are to taken out to pay off the lump sum were to fall in price then that would leave you with a shortage when it comes to paying off the final borrowed amount.

Many depend upon their property prices increasing which would mean that if funds are not available they can re mortgage or sell off their property making a tidy profit.

Every home owner is responsible to have their mortgage paid off by the end of the term.

When taking out an interest only mortgage you must have alternative saving alongside, this would pay off the initial borrowed amount. This may be in the form of savings, ISA's, endowment policies etc.

You can choose to pay a part of the lump sum alongside your interest every month reducing your debt. This would cost more but will give you that extra safety cushion when having top pay the lump sum.

For more information about interest only mortgages fill in our online enquiry form and one of our advisors will give you a call back, answer all questions you may have regarding the mortgage and help you find the ideal package for you.