Interest Only Mortgage Advice

An interest only mortgage is fundamentally a mortgage where you do not repay any of the capital back to the lender and your payments each month are made up of solely the interest charged on the amount you borrowed. Thus, as you are not repaying any capital, the amount you owe will never go down.

As such, the payments on an interest only mortgage are considerably lower than when the mortgage is on a capital repayment basis.

Most lenders will require you to have an investment vehicle in place to repay the mortgage on its completion. These can be arranged by way of an ISA or Endowment.

In order to ensure that you will be able to repay your full mortgage amount on completion, you should always insure that you make the necessary payments for your investment vehicle.
Please note that investments depend on growth and are not guaranteed to reach any projection.

You should always seek advice before choosing an investment and we at Burton Mortgage Services would like to direct any investment queries to our recommended Independent Investment Specialist Firm, Fisher & Co Financial Services Ltd. They can be reached on 01524 416511
Burton Mortgage Services Ltd is highly knowledgeable about interest only mortgages and is fully qualified to assist with all aspects of your enquiry.

If you would like to enquire about an Interest Only mortgage please complete our mortgage enquiry form and one of our qualified advisers will contact you within the next 24 hours.