Do you have an interest-only mortgage? These once popular mortgages allow borrowers to only pay the interest charge each month for the life of the mortgage. At the end of the mortgage term, the borrower has to repay the full amount borrowed, either using a separate repayment vehicle or by selling their home. Getting an interest-only mortgage used to be a common choice for borrowers, as they were generally considered to be more affordable than a capital repayment mortgage. With a repayment mortgage you pay interest charges and repay some of the outstanding mortgage balance each month throughout the mortgage term. Keep up those monthly payments and the mortgage is fully repaid at the end of the term. But in recent years, the number of interest-only mortgages have fallen dramatically.
Repaying your interest-only mortgage
This 627 word blog post shares the latest figures from UK Finance on the number and value of interest-only mortgages in the UK, which have fallen dramatically since their records began in 2012. It also shares some tips for repaying an interest-only mortgage by the end of the term. Written on 17th May 2018.