Moneytree Solutions are authorised by the FSA
Interest Only Mortgages
Interest only mortgages as the name suggests are mortgages that only the interest element of the loan is repaid to the lender, you should be aware that at the end of the mortgage term the capital that you originally borrowed plus any fee's added to the loan will still be outstanding you may wish to take out some type of investment product to help pay the capital, Interest only mortgages can be utilised for a short period of time as a low cost alternative in the initial years of the mortgage, but should revert to a capital repayment loan as soon as possible.
Many investors utilise interest only mortgages to take advantage of the low monthly payment and rely on the capital growth of the property, this should only be undertaken by individuals who thoroughly understand the implications,