First Time Buyers Mortgages

Interest-Only Mortgages

What are Interest Only Mortgages?
Mortgage repayments are traditionally comprised of capital and interest repayments. An interest-only loan means you just pay the interest back to the lender.
Traditionally, you would be required to show that you had set up an investment vehicle such as an ISA or pension in which you would save for the capital. Most lenders today offer an interest-only loan without this proof.

Interest Only Mortgages - Advantages
Paying just the interest will reduce your monthly repayments considerably, giving you extra cash.
Ideally you should also have some sort of savings vehicle set up to repay the loan as well as the interest.
Can be a way of making the first step affordable in terms of mortgage payments.

Interest Only Mortgages – Disadvantages
When you do switch to a repayment mortgage, the rise in monthly payments could come as a shock – especially if you make overpayments to catch up with the previous shortfall in capital.
If you continue to pay just the interest, you will not own the property at the end of the chosen mortgage term.

Lenders Specialising in Interest Only Mortgages
Most lenders.

Interest Only Mortgages Advice
To find out which is the right first time buyer mortgage for you and whether interest only mortgages are appropriate, seek mortgage advice.

Features, advantages and disavantages of specific first time buyer mortgages:

100% Mortgages l Cashback Mortgages l High LTV Mortgages l Graduate Mortgages l Professional Mortgages l Mortgages with Parents l Guarantor Mortgages l Family Offset Mortgages l Mortgages with Friends or Family l Mortgages at University l Rent a Room Mortgages l Affordable Mortgages l Part Repayment Part Interest Mortgages l Interest-free Start Mortgages l Shared Ownership Mortgages l Poor, Adverse or Poor Credit Mortgages l Key Worker Mortgages l Shared Equity Mortgages l 30, 35, 40 Year Term Mortgages