Interest Only Remortgage
What is an Interest Only Remortgage?
With an Interest Only Remortgage you will only be repaying the interest accrued on the remortgage debt.
Another option in the future: Could be to switch your interest only remortgage to a repayment and interest remortgage, as your financial circumstances become more stable.
Advantages of an Interest Only Remortgage
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Interest Only Remortgage Repayments will be cheaper because your monthly repayments only cover the interest attached to the mortgage debt
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Interest Only Remortgages offer lower monthly repayments, so you could purchase property that a repayment and interest remortgage deal would not be able to
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At the end of the interest only remortgage repayment term the equity in the property may be significant that you can borrow against it with an equity release remortgage
Disadvantages of an Interest Only Remortgage
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Interest Only Remortgage Repayments do not pay off any of the capital borrowed
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At the end of the repayment term, your interest only remortgage repayments will not have bought you your home outright
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Remortgage Lenders typically insist that you take out other investments during the length of your interest only remortgage term
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You must ensure that you have enough capital to pay off your property in full at the end of the remortgage term