With an interest only mortgage or loan, the monthly repayment covers only the interest element of the mortgage or loan leaving the capital outstanding at the end of the mortgage or loan term.

Payments received are applied to accrued interest only and not to a principal reduction.

interest payments are made only, not the principal - usually only for a short period.

Only interest is payable during the term of the loan with the capital being fully repaid at the end of the agreed loan term. We require written confirmation from the applicant of how they intend to repay their loan at the end of the term.

Payments are made on the interest only. The principle balance remains the same. When the loan is paid off, the original principle balance is due.

This is a mortgage where your monthly repayments go towards paying off only the interest on the mortgage. You need to have a separate investment vehicle into which you make payments aimed at building up a fund capable of paying off the mortgage capital at the end of the term. The investment vehicle could be an ISA, a pension or an endowment.

There are 2 types of mortgage, interest only or capital repayment. With an interest only mortgage the balance of the mortgage stays the same throughout the mortgage term. Interest and a premium to an investment vehicle are paid monthly. At the end of the term, the proceeds from the investment vehicle are intended to repay the mortgage. The amount will depend on the performance of the investment vehicle. If you choose an interest only mortgage you will be responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the term.

Only the interest portion of the loan is paid for a fixed set of years. After that initial term, the principal and the interest is paid. At any time additional payments can be made towards the principal.

Your monthly payments to your lender are simply made up of interest. You do not pay off any of the mortgage during the term of the mortgage. You pay off the mortgage finally using the proceeds of a separate investment plan for example, an endowment, personal pension or ISA and so on.

With an interest only mortgage or loan, the monthly repayment is made up of the interest element only, leaving the original capital outstanding at the end of the mortgage or loan term.

A term loan arrangement calling for payments of interest only, not to include any amount to be paid to the principle balance borrowed.

A loan where the amount owed remains the same and the regular payments are made up solely of interest. At the end of the interest only period, the amount owed is the same amount as initially borrowed. Short term interest only loans are often called bridging finance as they usually are used to "bridge" the period between the drawdown of loan monies and the known future receipt of monies, generally from a property sale.

payments received are only applied to accrued interest on the loan.

Mortgage - This is a mortgage where your monthly repayments only pay the interest on the mortgage. Therefore, at the end of the mortgage you still have to repay the full sum you borrowed. You are advised to have a separate investment vehicle into which you make payments aimed at building up a fund capable of paying off the mortgage capital at the end of the term. Typical investments include ISA's, a pension or an endowment policy.

Usually a short term arrangement 1 to 5 years, but some lenders have products providing 10 years interest only and 15 years principal and interest.

Loan payments made on the interest portion of the loan not the principle

This is the lowest payment you can make on a loan where you pay interest only for an agreed term, usually 1, 2, 3, or 5 years. You do not make principal payments hence your loan balance does not reduce. You repay the loan in full in one lump sum payment or it converts to principal and interest at the end of the interest only term.

A term loan arrangement calling for payments of interest only, not to include any amount for principal.

Usually a short-term arrangement whereby payments are made on the interest only, not the principal.

Only the interest is paid off during the term of a loan. The principal is repaid at the end of the loan.

A security representing the coupon payments from an underlying pool of mortgages. IOs are sold at a deep discount to their notional principal amount. The primary risk is early principal prepayment, thereby eliminating interest payments.

This is a form of mortgage repayment where throughout the entire term of the loan the repayments consist solely of interest. The capital of the mortgage remains untouched and a separate savings repayment vehicle such as an endowment or pension plan must be taken out to ensure that the balance of the mortgage can be paid off when the loan term ends.

A mortgage where only interest is paid during the term of the loan. The capital borrowed is repaid at the end of the mortgage term using the proceeds of an investment repayment vehicle taken out for that purpose.

An 'interest only' loan means that your repayments only go towards repaying the interest for a specified period, rather than repaying the principal amount of the loan. For example, paying your loan "interest only" means that the principal balance stays the same. Paying interest only can be good if you need extra money for buying furniture or improving your home. It is also popular for investment loans.

referst to the type of payment terms on a mortgage where a lender does not require the mortgagor to repay any of the principle loan balance for a specific period of time. A typical interest only mortgage loan period will range from between one to five years on a standard loan. Then it will usually convert to an amortizing loan, in which a higher payment will be required to assure the principle balance of the mortgage is eventually repaid. Interest only mortgage loans are very popular today with the increased loan sizes due to rapidly rising home prices. Interest only mortgage loans also refer to bridge or hard money mortgage loans that are generally short term and need to keep payments to a minimum.

The interest portion of a stripped mortgage-backed security or an interest-only tranche of a CMO. All interest payments on the underlying mortgages are due to registered holders of the IO security. If the mortgages prepay faster than expected, the buyer may receive less in cash flows than the amount paid.

A term loan requiring interest only, without principal.

Some lenders permit you to pay only the interest due on a loan for a portion of the loan term, which lowers your periodic payment, but does not decrease your principal balance on the loan.