What is the difference between an interest-only and repayment mortgage?
An interest only mortgage is where you pay only the interest charge for borrowing the money each month. At the end of the mortgage you will still owe the same amount of money as when you started. This is typically paid off with some kind of investment policy (eg. ISA, PEP, Endowment or Pension) taken out in conjunction with the mortgage. It is your responsibility to ensure you have a suitable repayment facility if you choose an interest only mortgage.
