A type of home loan where your monthly repayments to the lender comprise only the interest due on the debt. The principal part of the loan remains the same for the entire length of the term. You must take out a savings plan in conjunction with the loan to make sure you have the money to pay off the principal at the end of the loan term.
MP] An option attached to a mortgage, which allows the borrower to pay only the interest for some period.
Monthly payments to the lender are made up simply of interest. You don't pay off any of the capital of the mortgage during the term of the mortgage, but do so at the end, having accrued a large enough amount of money in an investment fund. Classically, these investment funds have always been endowments, but increasingly they are ISAs.
a mortgage where you pay interest on the entire loan to the lender for the whole mortgage period while putting money into a separate investment which should grow to cover the loan.
A mortgage on which for some period the monthly mortgage payment consists of interest only. During that period, the loan balance remains unchanged.
Credits offered by stores where no interest is included and you pay for your item in equal installments for a particular time say 6 to 12 months.
You only pay interest to your lender throughout the mortgage term and your mortgage balance doesn't reduce.
This is where monthly payments cover only the interest on a mortgage. The outstanding balance remains the same, so the borrower needs to make additional investments to ensure the full amount can be repaid at the end of the mortgage period.
a mortgage whereby the borrower is only required to pay interest on the amount borrowed during the mortgage term. It is the borrowers responsibility to ensure that enough funds will exist (either through an investment policy or other means) to repay the full mortgage at the end of the term.
A mortgage loan in which the borrower makes periodic payments of interest only and pays the full principal balance at the end of the loan term.
Mortgage payments are made up purely of interest. You then pay off the capital of the mortgage at the end of the term.
A mortgage on which only the monthly interest cost is paid each month. The full principal remains outstanding. The payment is lower than an amortized mortgage since once is not paying any principal.
This type of mortgage is where the borrower of the loan only has to repay the interest on the mortgage through monthly payments. At the end the remaining balance can be paid with investments like a pension plan or a share in the stock market.
You pay only the interest on your mortgage, but also put money into an investment scheme to pay off the whole mortgage at the end of its term.
A mortgage whereby a customer's repayments only contribute to paying off the interest owed on the mortgage. An alternative investment is required to pay off the capital of the loan e.g. an ISA, endowment. See Interest Only Mortgages for more information.
With a mortgage like this, your monthly repayments cover only the interest element of the loan. You will need a second repayment vehicle, such as an ISA, endowment or a personal pension, to repay the capital.
With an interest-only mortgage you pay just the interest on a monthly basis as normal. You can then decide how you wish to invest your money to pay off your mortgage at the end of the term, by using an investment plan or a pension plan sum for example.
A loan in which only the interest is paid on a regular basis (usually monthly), and the principal is owed in full at the end of the loan term.
This mortgage does not pay off any of the capital borrowed, just the interest. The outstanding mortgage is paid off using the proceeds of a separate investment plan – endowment, pension, PEP, ISA etc.
A mortgage arrangement where the sum borrowed need not be repaid until the end of the mortgage term, and only interest is paid in the interim. The loan is often repaid by the proceeds of an investment vehicle like an endowment policy, pension plan or ISA/PEP
An interest-only mortgage is a non-amortized loan where only the interest is paid back at regular intervals. The principal sum is paid back at the end of the mortgage usually via an investment vehicle such as a pension, PEP, or ISA.
The mortgage payments to the lender are made up simply of interest. You do not pay off any of the capital of the mortgage during the term of the mortgage. The borrower also pays into an investment vehicle, historically endowments, but increasingly ISAs are being used. The idea is that the investment vehicle will have performed well enough to repay the capital by the end of the mortgage term.
Monthly payments based only on interest payments, with the principal of the loan left at the same amount for the entire term. To settle the amount at the end of the loan period, an associated fund such as a pension plan or an ISA is a prerequisite to taking this type of mortgage.
With an interest-only mortgage, your monthly mortgage payment only covers the interest on the loan. At the end of the mortgage term, you still owe the mortgage lender the original amount you borrowed. Separate monthly payments are made to an investment vehicle (typically an endowment) in the hope that the investment will have grown enough to repay the mortgage at the end of the mortgage term. Interest-only mortgages linked to endowment policies were popular in the 1980s and 1990s, but fears of endowment shortfalls have meant that most people now opt for repayment mortgages.
A mortgage where the lender requires only payment of interest during the term.
is a type of mortgage where you only need to repay the interest periodically, with the principal being paid in one lump-sum.