- Written by John J Bloomfield
If you were to die tomorrow would your family be left with more than memories?
Would your mortgage be fully repaid? - If you have an insurance plan to pay off your mortgage when did you last check that it will cover the mortgage in full including any lender fees and early repayment charges?
If you’re currently arranging or rearranging a mortgage you might have come across the term ‘interest only’ and you might even be wondering why the payment quoted for ‘interest only’ is so much lower than for a repayment mortgage.
As I’m sure you know when a mortgage lender issues you a loan for which they charge you interest. When you take out an interest-only mortgage the payments you make to the lender cover the interest alone and you are not repaying any of what you owe back. So if you borrowed £100,000 at the start of the mortgage you will still owe £100,000 at the end of the loan too.
