What is an Interest Only Mortgage?

An interest only mortgage is when you repay only the interest from your mortgage and not the capital debt. One of the advantages of switching to an interest only mortgage is that the monthly repayments will in most cases be considerably lower than a repayment mortgage. But at the end of the mortgage term you will still owe the original amount of the mortgage that you borrowed.

For most people who have an interest only mortgage, they need to also set up another alternative to repay the amount owed at the end of the term, unless you are expecting an inheritance or a sum of money that is owed to you, this is most commonly a savings account.

Make sure you compare savings accounts with comparethemarket.com to make sure you find a great interest rate that makes the most of your savings.

How can comparethemarket.com help?

Here at comparethemarket.com we know the importance of saving money. A mortgage is a big financial investment, it is important to make sure you get the best deal possible.

Shopping around for your mortgage is easy! All you need to do is fill in an online form with details about the property you wish to buy and then you can compare some of the best deals the market has to offer in minutes.

If you would prefer to talk to someone about your borrowing needs, the comparethemarket.com page links you to London and Country mortgages who can help you find a competitive rate on your mortgage that could save you money. The number to call is 0800 953 0603 to speak to an advisor.

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Also…

Once you have brought your new property and are preparing to move in, you will need to consider other bills and insurances. These could include options such as;

Home Insurance
Utility providers like gas and electricity
Broadband and Digital TV
Life Insurance
Mortgage Payment Protection Insurance
Home Phone

Make sure you compare with comparethemarket.com to find competitive deals that could save you money!

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