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Interest Only Mortgage.

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srak
srak Posts: 86 Forumite
in Mortgages & endowments
Can I please have some advice?
I have been told to do a search for competitive rates but I'm not very good on the computer yet. Can someone please advise me? I believe that I can get comparison tables. Is that right?
Thanks.

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Look here...

    https://www.moneyfacts.co.uk

    or here...

    https://www.moneysupermarket.com

    or here...

    http://www.moneysavingexpert.com/mortgages
  • srak
    srak Posts: 86 Forumite
    One site said that since interest only was being paid, only the full amount borrowed would become payable at the end of the term, but another said that the balance would be almost double the original amount. I checked that it was interest only!
    Help!
  • misesther
    misesther Posts: 46 Forumite
    If it's interest only, I would think that only the initial amount would be repaid.
    However, someone more knowledgable should advise you! :p
  • dunstonh
    dunstonh Posts: 119,664 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Interest only is when you only pay the interest each month but the debt remains the same value over the term. If you borrow £100k, then at redemption, you have to repay £100k.

    You may be getting mixed up with equity release mortgages where some of those add the interest onto the debt rather than you pay it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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