Not the case though. In fact, not that scary at all! Not for everyone though so it is important to be able to make an informed choice.
An interest only mortgage is actually a very common choice for an investment property or a second property where it is ok that the balance won’t decrease over time. With an interest only mortgage your monthly payments are just that – interest which means you will still owe as much at the end of the term as you do at the start.
With this in mind, interest only isn’t usually suitable for your main residence. In fact, a lot of lenders criteria leads you away from it unless you have a proper plan in place to repay the mortgage at the end of the term. When we go through the mortgage process with you we will look at your repayment options to make sure it suits your needs, whatever they may be.
No, an endowment is just one type of repayment vehicle that can be used. There are lots of others to choose from and you can sometimes even use the sale of the property. This would only be suitable though if you have enough equity to down-size or if it is not your main residence.
In most cases yes, this will mean making overpayments. Most lenders will allow this up to certain limits, some lenders have slightly different rules on this though so be careful to check.
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