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 interest only mortgage 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 Interest only 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