What is an interest only mortgage?

What is an interest only mortgage?

With an interest only mortgage your monthly mortgage payments only pay the interest element of the loan and don't pay off any of the amount you borrowed.

To repay the mortgage some borrowers pay into an investment such as an ISA, pension or an endowment. Others sell their property at the end of the mortgage term.

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Your home or property may be repossessed if you do not keep up repayments on your mortgage

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