Interest Only Mortgages
These mortgages used to be known as ‘endowment mortgages’. With these, the lender only charges you interest on the loan you’ve agreed. And you don’t pay the capital back until the end of the mortgage.
Your monthly repayments will be worked out depending how the rate you’ve chosen is set. At the end of the loan, you’ll have to pay back the initial capital you borrowed in full by whatever means you have arranged – like an Endowment Policy or an ISA.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it. Your home may be repossessed if you do not keep up repayments.
Ms Rees, London
Brilliant working with you
Jill, it’s been brilliant working with you on obtaining a mortgage. You have been really proactive and supportive in organising it, and liaising with the various bodies involved. Thank you so much
