Interest Only Mortgages

As their name suggests, with an interest only mortgage you only repay the interest on the loan. At the end of the term the capital is still outstanding. Therefore you will usually need to take out some kind of investment policy to save up enough to repay the loan at the end of the term.

 

Traditionally the preferred product for repaying the capital of an interest only mortgage was a mortgage endowment policy (which included a set amount of life cover) - although more recently customers are using Individual Savings Accounts (ISAs) and pensions to build up a sufficient sum and taking advantage of the tax breaks offered by these products.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE


The Financial Services Authority does not regulate some forms of mortgages.


There may be a fee for Mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £295


A typical fee for Mortgage advice is 0.5% of the Mortgage amount


As we are independent you have the choice whether to pay a fee for the mortgage advice we provide.

 

Financial Solutions Wales Ltd. is authorised and regulated by the Financial Services Authority.

Registered in England and Wales No. 5390216. Registered Office: First Floor, 2-4 Station Road, Llanelli, Carmarthenshire. SA15 1AB

FSA Firm Number: 445938


Financial Solutions Wales Insurance LLP is an appointed representative of Financial Solutions Wales Ltd. which is authorised and regulated by the Financial Services Authority.