An interest only mortgage will allow you to make monthly payments just to cover the interest on the money you have borrowed. Unlike a traditional repayment mortgage where payments consist of both capital and interest, with an interest-only mortgage, you will only pay the interest and the balance of the loan will therefore not decrease.
There are various reasons why an interest only mortgage may be appealing:
Risks and considerations
Interest-only mortgages may not suit everyone, and it is important to fully understand the terms, risks and long-term financial implications.
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