When Is Interest Only A Good Mortgage Idea?

An interest only mortgage involves a repayment schedule where for a set period of time - usually five to 10 years - you only pay the interest. This means that you're making no dent in the original principal amount owing and this will have to be addressed further down the line but what it does mean is that you're making lower repayments for that initial period.

On first glance, this would appear to be storing up financial trouble for yourself in the years to come but let's look at some of the situations when an interest only mortgage might be the most effective way to finance buying a property.

If you have a heavily fluctuating income that is at a low ebb at the moment but is likely to go much higher at various points in the future then perhaps it w View the rest of this article