Interest Only Mortgages
There are usually two types of mortgages that you can use to finance a property purchase. One is a traditional mortgage, in which you immediately begin to pay the principal and interest payments. The other is an ‘Interest Only Mortgage’ which gives you the option to make interest only payments for a set period of time, after which the mortgage enters the repayment period and both principal and interest payments are made to repay the loan.
Interest Only Mortgages are usually a better option for those who plan to resell their property fairly quickly, or for those who do not have a fixed income and may need flexibility in their monthly payments.