Interest
Only - Mortgage Information
What
is a Interest Only Mortgage?
Mortgages
can be divided in to two types: repayment
mortgages and interest only mortgages.
Deciding
which mortgage is best for you depends on a variety of factors,
which is why it's important to do your financial homework first.
Interest
only mortgages are deemed as being more risky because the borrower
must take out an additional 'savings vehicle' (such as a personal
pension plan or an endowment) to cover the outstanding loan when
the mortgage closes. Because the performance of these investments
depends on the stock market it's difficult to know exactly where
you stand financially.
If
the stock market is going well then borrowers stand to benefit,
which isn't the case with anyone who has taken out a repayment mortgage.
However, if the economy is in decline then there's a very real chance
that the investment won't meet the final mortgage settlement.
Before
you make any firm commitments it's a good idea to make an appointment
with an independent financial advisor ( IFA
). Having made your mind up about which type of mortgage would be
most advantageous, you can then turn your thoughts to deciding the
best way to make your repayments.
List
of Major Mortgage Lenders
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
