An interest
only mortgage means you
only repay to the lender the
interest
on the amount you borrow. For
example:
if you
borrow £100,000
at an interest
rate of 5%, your repayment
will be £5,000
per year. This equates to £416
per month (£5,000 / 12).
In
comparison, a Repayment
mortgage of £100,000 repaid
over
25 years would cost
£493.33
per month.
This
is the obvious advantage
of the Interest
only mortgage and is a viable option
if you don’t
intend to live
in your home for the rest of your life.
Conventional
Building Societies have historically always
insisted that Clients
with Interest only mortgages take out Endowments
or Pensions to provide funds to repay the mortgage
at the end of the term.
This of course adds
to the cost of your monthly
repayments and defeats
the object of providing a mortgage
with the lowest monthly payments possible.
The
Independent Mortgage Advice Bureau has access
to High Street Lenders,
Banks and Building
Societies who are prepared to grant “True”
Interest only mortgages with no
strings attached.
To obtain an instant quotation
tailored to your personal circumstances, click
here, complete the questionnaire
and telephone our freephone
quotation service and within minutes
you will discover how much
you could save each month! |
