Compare Interest Only Mortgages
| Interest Only | Offset | Fixed Rate | Remortgage | Self Certification | Buy To Let | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Woolwich - Great mortgage deals from an award-winning lender. | ||||||||||||
 | Details |  | | | |  | |  | ||||
| Nationwide - Straight forward, great rate mortgages with flexible features as standard. | ||||||||||||
 | Details | | | | | | | | ||||
| Simply Business Mortgages - Specialise in providing financial solutions and mortgages for your business. | ||||||||||||
 | Details | | | | | | | | ||||
| Displaying 1-3 of 3 mortgages that meet your search criteria. | ||||||||||||
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Latest Mortgages News
Mortgage Costs 'Up 78% Since 2003'The average monthly cost of mortgage repayments in the UK have risen by 78 per cent over the past five years, an accountancy firm said today.
4 Jul 2008Home Builders Downsize in Credit CrunchThe mortgage market in the UK could be put under further financial strain by recently-announced troubles at some of the UK's biggest new home builders.
4 Jul 2008Sit Out the Downturn, Firm AdvisesProspective homebuyers should take their time, Firstrung has suggested.
3 Jul 2008Popular Related Articles
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Interest Only Mortgage Guide
An interest only mortgage requires you to make monthly payments to the mortgage lender in order to pay off the interest on the amount borrowed. In addition to the interest only mortgage you need to establish a separate long term investment plan that will accumulate enough funds to pay off the full loan amount at the end of the repayment period.
The investment plan required to pay off the mortgage usually comes in one of three forms; an ISA (individual savings plan), a pension or an endowment. This investment does not have to be provided by the mortgage lender.
Advantages
- You can choose an 'investment vehicle' that is tax efficient.
- If the investment growth rate exceeds those estimated at outset you may be able to pay off your mortgage early or enjoy a lump sum at the end of the repayment period, in addition to paying off your mortgage.
Disadvantages
- You have no guarantee that you will have sufficient funds to pay off the mortgage at the end of the repayment period, as the investment could perform below that assumed at the start. (By monitoring your investment's performance you could make additional contributions during the repayment period if you felt the fund was under performing.)
- Some forms of investment may incur a penalty fee if you stop paying premiums.
- Your debt remains constant throughout the mortgage period.
NB This information is provided to give you an overview of the different types of mortgages available. It is not comprehensive and you should not base your mortgage decision on the information found here. We recommend you seek professional advice in order to determine the most suitable mortgage for you.
