What is meant by ‘Interest-only’?
This is a repayment type that allows you to make regular repayments that only incorporate the interest charged on the loan, over a set period of time.
This means that the outstanding loan balance remains relatively unchanged during the term of the Interest-only period.
Lenders generally offer Interest-only periods between one and five years.
After the initial Interest-only period the loan reverts to Principal and Interest for the remaining term of the loan.
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