Interest Only Mortgages

Interest Only Mortgages


  • Interest only means your monthly mortgage payments will only cover the interest you owe on the loan. Sometimes you will need to make arrangements to repay the capital from your other resources or set up a savings plan to cover the repayment in the future. They keep mortgage payments low whilst still enabling the borrower to benefit in any increase in the market value.
  • Please be aware that your mortgage payments will not reduce the mortgage balance borrowed.
  • For more information on interest only mortgages or to apply for a interest only mortgage please follow the link - Interest Only Mortgages
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When home buying, there are two choices as to how you pay off your mortgage. Repayment mortgages are where you pay off the amounts of the loan each month and reduce the amount you are borrowing gradually during the term of the mortgage. If you want to know about our current range of mortgages visit our 'mortgages' product page.

Interest only is where a savings plan or other vehicle is used to save to pay off the total mortgage at the end of the mortgage term as a lump sum. This can reduce the size of mortgage repayments but can be seen as risky home buying depending on whether the savings plan or investment vehicle grows sufficiently to cover the size of the mortgage loan. If the savings plan is an ISA it can be possible to save towards your mortgage and receive tax relief from the non-taxable feature of an ISA and can help with the cost of a mortgage overall. If you wish to learn more about our products and find out if we offer 95% mortgages, 100% mortgages & online mortgage application we have further information listed on our mortgages product page.

If a property is currently in a bad condition internally due to having no facilities and needing a full refurbishment, mortgage lenders will not lend on these types of properties as they feel it is a more risky security, it is possible however to obtain bridging finance secured on the property for the period of the refurbishment to then refinance to a mortgage lender once the work is complete.




Bridging finance by UK Bridging Loans Ltd www.ukbridgingloans.co.uk all rights reserved