With an Interest-only mortgage you pay back just the interest charged on the amount you’ve borrowed each month, but none of the original amount you borrowed, so the amount you owe doesn’t reduce.
This means that your monthly payments are lower than they would be on a repayment mortgage. However you'll need to repay the amount you borrowed (the capital) at the end of the term, so you'll need a suitable repayment plan.
This means that your monthly payments are lower than they would be on a repayment mortgage. However you'll need to repay the amount you borrowed (the capital) at the end of the term, so you'll need a suitable repayment plan.
