Using Interest-Only Mortgages

An interest-only mortgage, as the name suggests, is one where no principal repayments are required to be made during the term of the loan. It is usual for an interest-only mortgage to be interest-only for a fixed period of time, such as two years or five years, after which it can either be converted to a table loan (principal and interest) or rolled over as interest-only with the approval of the lender.

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