Interest Only Mortgage ?
The full amount of the loan has to be repaid to the lender at the end of the term.
To ensure you can make this final payment, you invest additional funds in investments, which are designed to generate enough (preferably more than enough) capital to repay the mortgage at the end of the term. On the plus side, you can choose from a variety of investment vehicles, some of which can have tax advantages. And should you move or re-mortgage, your investment vehicle can usually be reallocated to the new mortgage.
However, unlike a repayment mortgage, the total amount of your debt does not reduce over time. And there is no guarantee that your chosen investment vehicle will grow sufficiently to repay your mortgage (although you can usually top up your contributions to investments as you go along if this looks likely to be the case).
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