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Benefits of interest only mortgage?

[Deleted User] · 2021-04-04 13:25:50

Hello, I am a first time buyer, looking into mortgages before I place an offer for a home I have my eye on. I wondered what would be the benefits of an interest-only mortgage and under what circumstances would this be preferable to the capital mortgages? Thank you in advance!

Comments

Solenoid Posts: 69 Forumite

8 April 2021 at 9:13AM edited 8 April 2021 at 9:14AM

My sister in law had interest only while she was studying full time in a uni. I wouldn't do it if you can save up the capital before your mortgage twrm ends. Your interest payments go down as your capital goes down as well. So you pay less and less.

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