A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Letter I

Interest only mortgage

In contrast to Capital and Interest, an interest only mortgage is a loan for which requires only payments of interest to the lender during the term of the loan.

All mortgages other than capital and interest repayment loans are a form of interest only loan.
Some lenders will allow loans to be set up without any specific provision to repay the capital at the end of the period this is known as a pure interest only loan.