With an interest-only mortgage, your monthly repayments to the lender consist only of interest on the total loan amount. The interest payments will vary depending on the interest rate being charged by the lender at the time. This type of mortgage involves paying the lowest possible monthly outlay to the lender, as no capital is included in the repayment. Instead of repaying the capital, regular payments are put aside in a suitable investment or savings plan. This grows cumulatively and assumptions are made regarding its growth in order to calculate a monthly repayment figure. If you are fortunate, the investment will accumulate at a higher rate than is required to pay back your loan on time, resulting in a cash surplus at the end of the term. This is not always the case however, and sometimes there can be a cash deficit at the end of the term.

a long term loan offered to borrowers to enable them to buy their own home

Only interest payments are made throughout the term of the loan and the original loan amount remains payable to the lender at the end of the term. An investment (savings) plan, which pays out a lump sum in later years, is used to repay the loan amount remaining at the end of the term.

Joint Tenants Land Registry

Joint Tenants Leasehold