Interest Only Mortgage Explained
This is a product whereby the amount of money that you pay back each month is just to cover the interest that the mortgage sum is accruing. The big downside here is that at the end of the term you have to pay the entire capital amount that you borrowed and this never reduces, as you are just paying interest. This mortgage is usually considered by those who have little money at the start of the mortgage term so want lower payments then but expect to have an increase in salary later and perhaps move to a different product.
Property Articles
We hope you find this mortgage glossary / explanation of mortgage terms useful. You might also be interested in our articles on a range of property related issues, a selection of which are listed below:- Spanish mortgages
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- Property Gazuming Explained
- Mortgage Advisers Explained
- Mortgages and Regulation
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- Guide for First Time Buyers
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- Buying a house with friends
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- Right to buy and mortgages
- Home Buying Milestones
