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Lots of you may be considering an Only Interest Mortgage at the moment particularly for the unhappy group are losing their jobs and are struggling with their outgoings. Having your greatest outgoing bill cut should help. Many people borrowed large sum to afford the home you wanted meaning you are left with not much choice at the present moment and need to go down the interest only path in order to be able to afford the repayments. Considering long-term though you do need to think about how you will pay off the actual mortgage, a different repayment scheme should be in place to pay back your mortgage. There are any different options including relying on inheritance funds to repay the mortgage, selling the house at a later date or a more pragmatic answer is having an investment plan. You could work out the funds necessary at the end of the term needed to repay the mortgage and then save the proper sum in an ISA. You do have the choice of changing the type of your mortgage in the future to a mortgage maybe when you have paid a bit off the mortgage or you get a better job or your dependants have left home. Certainly at the moment with the base rate at 0.5% lots of people are choosing for a repayment mortgage that you can overpay on. You can make the overpayment amount the difference that you are now saving in repayments from when interest rates were at five percent so your aren’t paying back more that you are used to. Interest only mortgages are a frequent choice among first time buyers who battle with the mortgage repayments at the beginning but once they are in benefiting from raising incomes and a smaller mortgage can then consider moving back onto a repayment mortgage. Do remember to look at the ancillary costs that some mortgageproviders can charge for moving lenders. Other mortgages that might interest might be a 95 percent mortgages

Olivia is a writer for top mortgages and has explored the matter thoroughly.