ISA Mortgages – UK

 

The ISA mortgage UK

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.

If you’d still like to know more, read

The two types of Isa mortgage

and The dangers of an Isa mortgage.

 

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