interest only mortgages
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The idea behind interest only mortgages is that at the beginning of the mortgage you will only, as the name suggests, make only interest payments rather than both the interest and the principal payments as you would have to do with any other mortgages that aren't interest only mortgages. In reality you are not missing out on paying the lender back, because obviously they want their money back, all you are doing is delaying making the repayments.
With interest only mortgages the length of time which you only pay the interest tends to vary, but five years is a good guideline. After this "honeymoon" period you will then have to start repaying the interest and also the the principal payments, with some of the interest only mortgages the principal payments donot need to be repaid fo anything up to ten years but always check to see if you have any pre payment penalties with this kind of mortgage as they are sometimes incurred. You will also find that that there are different forms of these mortgages where you can have the interest rate fixed for life, the main advantage with these mortgages is that initially you are paying less that you normally would with your other conventional mortgages.
Below is a list of some of the mortgage rates and their payments, which can vary, if you are interested in interest only mortgages or want to know which will be the best mortgage for you then feel free to contact us and we will direct you to your nearest mortgage world adviser who will have a chat with you, discuss the best way forward, hey you never know they might even give you a cup of coffee, but most of all they will get you the best deal for you.
interest only mortgages - loans for which only payments of interest are paid to the lender during the term of the loan. All mortgages other than capital and interest repayment loans are a form of interest only loan. Some lenders will allow loans to be set up without any specific provision to repay the capital at the end of the period this is known as a pure interest only loan.