Saturday, 19 august 2006 money mortgages credit cards loans savings banking pensions insurance life insurance tax. At the start most of it will go towards the interest with only a tiny amount paying off the capital. Interest only is better than renting. The use of interest- only mortgages is not new.

This led to a fall in the numbers of interest- only loans with an associated repayment vehicle. What you could use to pay off an interest- only mortgage?Best unsecured loan. So, why are more and more homebuyers and movers arranging interest- only loans?

Anyone who finds interest- only products appealing needs to think long and hard before taking the plunge. This is the same as endowment mortgages - people only see what they want to and ignore the small print. A month, or just £88 a month more than an interest- only loan. Are interest- only mortgages a time bomb? With an interest- only mortgage your monthly payments only cover the interest on the loan - they do not pay off the loan itself.

There are two basic methods of repaying a mortgage - repayment or interest- only. What's interest- only, hasn't it been around for years? Interest- only mortgages usually have lower monthly payments than a repayment mortgage but are inherently more risky. Bank building society.