| Interest Only Mortgages |
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As well as the repayment mortgage, this is the second main type of mortgage available. As the name suggests, this is a mortgage where you pay only the interest to the lender and you can choose how you repay the capital - the amount you borrowed to buy your home - as a lump sum at the end of the mortgage. Your monthly payments are lower because you are only paying off the interest but you should ensure you are able to pay off the capital. Also, because you are not reducing the amount you owe, it works out being more expensive overall than a repayment loan.This is really the basis of the endowment or an Individual Savings Account (ISA) mortgage as you should take out a savings or investment plan which will help you pay off the capital at the end of the mortgage. Endowments and ISAs have been the favourite means of achieving this. Some lenders don't even ask you how you are going to repay the capital, but obviously a responsible lender should make sure that you can repay the loan. Add this page to your favorite Social Bookmarking websites          
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