Interest Only Mortgage Comparison
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Interest Only Mortgages
Cheap Interest Only Mortgages
If you’re looking for interest only mortgages you’re in the right place. With Tiger.co.uk, you can find a range of cheap interest only mortgages in moments. Simply enter your details to compare interest only mortgages and interest only mortgage rates at a glance.
What is an interest only mortgage?
An interest only mortgage is taking out a loan to buy a property and agreeing with the lender to only pay back the interest due on the loan until the end of the term when the full amount has to be repaid.
Who are interest only mortgages suitable for?
Interest only mortgages mean you can keep monthly overheads low, and they offer benefits to some buyers.
- Landlords: They may choose to sell at the end of the agreement. Buy-to-let property investors will often choose interest free mortgages.
- Anyone able to pay the lump sum at the end of the mortgage: If you want to live in a property bought with an interest only mortgage, lenders will want more information about how you plan to pay back the lump sum. Lenders will only give interest only mortgages to those with a sound financial plan to pay back the loan.
What are the benefits of interest only mortgages?
The benefits include the following.
- More freedom with how you pay back the loan. If you’re choosing interest only so you can invest elsewhere, you’re free to pay back more of the loan if your investment does well.
- If you know you are going to come into money in a number of years, an interest only mortgage allows you to delay paying for a property that you want to live in now.
What are the disadvantages of an interest only mortgage?
Some disadvantages of interest only mortgages include:
- You can end up paying more interest in the long run.
- You are at risk of ending up in negative equity if the value of the property ends up being less than the loan amount you have to pay back.
How much deposit do I need for an interest only mortgage?
While other products such tracker mortgages might only require a 5% or 10% deposit, an interest only mortgage is likely to require a higher deposit, sometimes around 25% or more.
Where can I find cheap interest only mortgages?
As with most financial products, the key to finding cheap interest only mortgages is to shop around. With our simple system, you’ll find it easy to compare interest only mortgages.
Find great deals with Tiger.co.uk
Here at Tiger.co.uk, we’re committed to helping you find fantastic deals on interest only mortgages as well as other products such as student mortgages. Our comparison site is designed to simplify the process of comparing interest only mortgage rates, helping you save time and money.