|
Interest only mortgages.
with an interest only mortgage, the capital remains outstanding until the end of the mortgage term and you pay only interest.
You must have some form of repaying the capital at the end of the term. Traditionally this has been done by use of an endowment.
Falling interest and inflation rates mean that some endowment policies are at risk of not hitting their original targeted investment amount, however, new policies with a term of over 15 years can usually be justified as providing good value if a sufficiently competitive endowment contract is used.
Other ways of provision for payment of the capital sum are based on the returns from pensions, ISAs or other investment products.
For information on the basic features of these mortgages please follow
the relevant links on the left.
home
|
