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.
Interest-only Mortgages
| Norfolk Financial Services Ltd is an appointed representative of Virtual Net (Europe) PLC which is authorised and regulated by the Financial Services Authority. Virtual Net (Europe) PLC is entered on the FSA register (www.fsa.gov.uk/register/) under reference 209569 |
| The information contained in this web site is for general
information only and is not financial, investment or
tax advice. The guidance contained within this website
is subject to the UK Regulatory regime and is therefore
primarily restricted to consumers based in the UK. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. |