Please help. Detailed info required
2007-09-05 03:49:26 · 2 answers · asked by Happy S 1 in Business & Finance ➔ Personal Finance
Interest Only is what it says - you are only paying Interest, so it's less outgoings per month.
Advantage - you have better cash flow, so maybe you can use the extra to finance a second or 3rd house ..
Disadvantage - when Interest rates go up, you have no-where to go ...
(the idea is that the house is rising in value faster faster than you are payingb interest .. so when you sell up, what you recieve more than pays off the Mortage)
2007-09-06 06:38:50 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
it depends on the the cost of the mortgage and if you can afford it,
interest only pay the interest on the loan (no equity building)
repayment pays the loan and capital (building equity)
there are many factors including
term of the mortgage
your age
type of property
deposit
credit status
go on nationwides website as it can give you a map (mortgage in principle) and you can choose which is better for you.
www.nationwide.co.uk
2007-09-05 15:14:55 · answer #2 · answered by mjammy1978 3 · 0⤊ 0⤋