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Just Us Financial Solutions | Interest Only Mortgages
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Interest Only Mortgages

Your home may be repossessed if you do not keep up repayments on your mortgage

Despite what seems to be popular thinking – many of our clients request interest only at the outset of our conversations and we successfully arrange plenty of interest only mortgages each month. We explain their availability on an individual basis, discuss other options and make sure you are aware of the risks. For higher levels of borrowing or low loan to values, interest only is still particularly available.

For high net worth individuals with a strong financial profile, this type of mortgage makes sense from a financial planning and cashflow perspective.

It is contemporary thinking that interest only mortgages are an important product for many of our more affluent clients, especially in London. It’s viable for people whose income is made up of large bonuses, commissions, stock options; and it’s also sensible for those who do not plan to live in this property indefinitely, need short term flexibility or have other assets which will cover their mortgage debt.

Interest only needs to be justified and evidenced. It needs to be clear that this is a sensible option and that there is a plan in place to repay the capital at the end of the mortgage term. On the plus side, you can choose from a variety and sometimes quite flexible number of investment vehicles, some of which can have tax advantages.

Repayment plans generally need to be documented, and interest only really should not even be considered if you can’t afford the monthly payments on a capital and interest mortgage. Secondary property, bonus income, stocks and shares can all be used as leverage – or a mixture of interest only and capital and interest can be a useful option.

Please remember : An interest only mortgage will only cover the interest on the loan that you have. Your payments to the bank do not cover any of the debt outstanding and at the end of the term you will still owe the capital borrowed plus any fees that have been added.

Contact us today to discuss interest only mortgages