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Fee Free Mortgage Advice - Unlike Most Mortgage Advisers We Do Not Charge Fees!

## Pros and Cons of Interest-Only Mortgages

### Pros:

1. Lower payments initially: Interest only mortgages offer lower monthly payments during the interest-only period, which can be ideal for people who need to free up cash flow in the short term.

2. Flexibility: An interest-only mortgage can give you flexibility in the first few years of homeownership. You can use the money you save to invest in other areas or to pay for other expenses, such as home improvements or education.

### Cons:

1. Higher monthly payments later: After the interest-only period ends, borrowers will have to make higher monthly payments that include both the principal and interest, which can be a big shock to the budget.

2. Risk of negative equity: If the property value falls during the repayment period, the borrower could end up with negative equity, which means the value of the property is less than the outstanding mortgage balance.

## Is an Interest-Only Mortgage Right for You?

Interest-only mortgages can be a good choice for those who want more flexibility in the short term and expect to have more income in the future to cover higher payments. However, they are not suitable for everyone. If you are unsure, you should speak with one of our mortgage advisors who can help you decide if this type of mortgage is right for you.

In conclusion, interest-only mortgages have their advantages and disadvantages, and it is essential to consider them carefully before making a decision. While they offer lower monthly payments initially, they come with the risk of higher payments later and negative equity. Therefore, it is essential to weigh your options before deciding if an interest-only mortgage is the right choice for you.