What Mortgages are available?
You repay part of the amount borrowed together with the interest being charge each month. In the earlier years of your mortgage, the majority of your monthly repayment is made up of interest. However, towards the latter part, the majority of your monthly payment will be for the amount borrowed.
You are only paying interest each month. This means that although your payments will be lower, the amount you borrow will still be outstanding at the end of the term. You will need to have credible arrangements to pay off the mortgage and avoid the property having to be sold, such as an ISA.
You can vary the amount you pay each month and take payment holidays in some circumstances. It may help to reduce your mortgage with lump sum payments without incurring an early repayment charge.
Typically, a current or savings account (or both) are linked to your mortgage and, each month, the amount in these accounts is then offset against your outstanding mortgage. You are unlikely to earn interest on your savings which are offset.
This is usually used for any property you own which has a primary purpose of generating income from letting out the property