Interest-only mortgages ‘can improve cash flow’
Property buyers can use interest-only mortgages to assist cash flow in the first couple of years following their purchase, an expert has suggested.
On the benefits of interest only mortgages, YourMortgage.co.uk editor Barney McCarthy suggested that investors could benefit from the cheaper repayments provided in the short to medium term - news which could interest those considering mortgages for professionals.
Mr McCarthy said: "When you first take a mortgage if you are just paying just the interest off rather than the capital arrears then it going to be cheaper."
However, he added that such payments should be relied upon for the long term.
Borrowers should have a repayment vehicle in place or at least plans to set one up, Mr McCarthy noted.
His comments come after a recent survey by LV= showed that 1.3 million interest-only mortgage holders have no specified investment vehicle to pay off the capital.
To book your free initial consultation with mortgages for professionalsclick here.
On the benefits of interest only mortgages, YourMortgage.co.uk editor Barney McCarthy suggested that investors could benefit from the cheaper repayments provided in the short to medium term - news which could interest those considering mortgages for professionals.
Mr McCarthy said: "When you first take a mortgage if you are just paying just the interest off rather than the capital arrears then it going to be cheaper."
However, he added that such payments should be relied upon for the long term.
Borrowers should have a repayment vehicle in place or at least plans to set one up, Mr McCarthy noted.
His comments come after a recent survey by LV= showed that 1.3 million interest-only mortgage holders have no specified investment vehicle to pay off the capital.
To book your free initial consultation with mortgages for professionalsclick here.
