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Interest only
repayments based on just the interest charged on a loan rather than the principal and interest. The loan balance does not reduce with interest only repayments.
The pros of paying interest only means that lower repayments during the interest-only period could help you save more or pay off other more expensive debts. On the other hand, you'll usually pay more interest overall than with a repayment mortgage, because the amount you pay interest on doesn't decrease during the term.
Learn MoreInvestors tend to use interest only loans to refrain from needing to repay capital, the monthly payments are lower than for principal-plus-interest loans. This helps to maximise cash flow while continuing to benefit from capital growth.
Learn MoreUltimately, lower repayments during the interest-only period could help you save more or pay off other more expensive debts.
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