Conversations with a Pug – What is meant by ‘Interest-only’? |

Conversations with a Pug – What is meant by ‘Interest-only’?

 

 

What-is-meant-by-‘Interest-only

 

 

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.

 

My Very Best To You Always,

 

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