An
Isa mortgage is a type of interest-only
mortgage.
With this kind of loan, the payment you make each month to
your mortgage
lender covers only the interest
owed for that period.
It doesn't include any of the capital the original sum borrowed.
that's what the Isa's for.
Isa stands for individual savings account, and the idea is
that you use this to save the cash to repay the capital at
the end of your mortgage
term.
However, this is not a particularly popular way of repaying
a mortgage for very good reasons.
Unless you're an especially disciplined saver,
who can afford to put away a sizeable sum each month and
are lucky with the investment returns you achieve it's probably
best avoided.
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