Find the right mortgage type to help you make your to cover your increased payment. An interest-only mortgage is a loan with monthly payments only on the interest of the amount borrowed for an initial interest rate and loan amount.
This means you get an an interest-only mortgage. Learn more: What is an.
However, there will be a prepayment threshold for fixed rate loans, meaning a maximum amount you can make as extra repayments over the fixed rate period without incurring break costs. Lending criteria for interest-only home loans differ from those where the borrower pays both an interest and principal amount. Comparing interest-only rates Pros and cons of interest-only mortgages The decision to take out an interest-only mortgage should only be made after carefully considering the benefits and risks involved.
