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Interest Only

Interest-only mortgage

With an interest-only mortgage you only pay the interest due on the amount you borrowed each month and repay the capital at the end of the mortgage term.

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However, very few interest-only mortgages are now offered. If they are, it’s usually in special circumstances such as buy-to-let or if you’re in later life. 

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This is because many people who were offered interest-only mortgages in the past had no means of paying back the capital at the end of the term.

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The mortgage lending rules on interest-only mortgages were tightened up in 2012. But many people took these mortgages out before then and are coming to the end of their mortgage term with no way of paying the mortgage back.

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If you have an interest-only mortgage and can’t repay the capital, contact your lender as soon as possible to discuss your options. The sooner you do this before your mortgage comes to an end the better. 

North Star Mortgage & Financial Services Ltd is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority: FCA 460421

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Commercial lending and most buy to let arrangements are not regulated by the FCA.

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North Star Mortgage & Financial Services Ltd

FCA no. 927746

Equity Release Council Member no. 3015

Registered in England and Wales no. 12637167

Registered Address: Unit 1, Green Lake Courtyard, Green Lake Lane, Aldford, Chester. CH3 6HW

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