Rainbow can assist you in arranging the Interest Only Mortgage you need...

In this form the mortgage loan is structured so that the borrower only pays the interest payment associated with the loan and does not pay back any of the outstanding capital borrowings. Therefore unlike a Capital Repayment Mortgage the debt is not reduced on a monthly basis. In this form the actual monthly payments are less, however this is solely due to the fact that there are no payments being made to reduce the debt.

In most cases the structuring of the repayment of the loan is left to the borrowers discression. In most cases this will involve some form of investment i.e. ISAs which will run alongside the mortgage with the aim of building up enough capital to repay the mortgage loan. In most cases such schemes are run over a25 year period.

The reasons for this are twofold. Firstly funding such schemes as well as paying interest payments can be expensive and a 25-year term allows time to slowly build up the investment. Secondly the long terms allow the investment time to grow. Of course as with any investment scheme there is a degree of risk and there is a chance that as well as having a surplus at the end of the term the borrower could also end up with a deficit. Before embarking upon such a scheme it is advisable that the borrower seeks the proper advise from a qualified body such as an IFA.  

 

 

Apply now! Get a great deal on a mortgage here

This form will allow a mortgage specialist to find you the best quotes from their product range, with good or poor credit.

It will take less than a minute to complete

Mortgage details

Change
Select the type of loan you require, if unsure select other
Enter the amount you wish to borrow e.g. 100,000
Enter the value of your property e.g. 150,000
Next

Property details

Change
Your current home address
How long have you lived at this address
Next

Your details

Change
Your full name e.g. Mr John Smith
Your date of birth
Your home telephone number e.g. 01234 567890
Your work telephone number e.g. 01234 567890
Your mobile phone number e.g. 07710 567890
Your email address e.g. test@example.com
Do you have any County Court Judgements?
Do you have any Individual Voluntary Arrangements?
Have you ever missed payments?
Have you ever declared bankruptcy?

 Apply now in 60 seconds