Your monthly payments represent only the interest due to the lender, and do not include repayment of capital. Your total loan must be repaid at the end of the mortgage term. You may therefore need to arrange additional investments which will generate sufficient capital to repay the loan.

ADVANTAGES: You can choose from a variety of investments, some of which have tax advantages. Should you move or arrange a remortgage, your investment can usually be reallocated to the new mortgage.

DISADVANTAGES: Unlike a repayment mortgage, the amount of debt outstanding does not reduce over time, and there is no guarantee that the investments chosen will grow sufficiently to repay your loan. Also, investment-linked interest-only mortgages can be slightly more expensive than repayment mortgages.

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

For mortgage advice we can charge a fee of £150 / 1% of the loan amount, or we can receive commission from the lender.

<< back

Interest-only Mortgages

Home.
About Us.
Mortgages.
Life Assurance.
General Insurance.
Health Insurance.
Pension Planning.
Corporate Insurance.
Savings & Investments.
Taxation.
Privacy.
Useful Links.
image accompanying the enquiries link enquiries image accompanying the calculators link calculators image accompanying the Jargon buster link jargon buster image accompanying the contact us link contact us
South West Financial Planning logoSouth West Financial Planning Ltd
Home menu seperator About Us menu seperator Mortgages menu seperator Life menu seperator General menu seperator Health menu seperator Investments menu seperator Planning menu seperator Corporate menu seperator Tax menu seperator Site Map
Registered company address:
122 Boutport Street | Barnstaple | Devon | England | EX31 1TD | Registered in England, No:04320209 |

South West Financial Planning Ltd is An Appointed Representative of Sage Financial Services Ltd., which is authorised and regulated by the Financial Services Authority.
SAGE FINANCIAL SERVICES LTD is entered on the FSA register (www.fsa.gov.uk/register/) under reference 150452
The FSA do not regulate some forms of mortgages or inheritance tax planning.
The advice and / or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.