If you are looking to purchase possessions, you may need to consider a different type of mortgage than simply a proprietor occupier loan. Is a helpful self-help guide to the different solutions you really have as the a house trader.

If you are searching to invest in assets, you may need to envision a different sort of financing than a manager occupier financing.

Interest-just financing mortgage

Interest-only (IO) fund is actually mortgage brokers that decelerate brand new installment of the lent number (the brand new principal’) to have a fixed name, constantly anywhere between three and you may 5 years. During this period, you just have to pay the attention in your loan, maybe not the principal. At the conclusion of one set months, the new payments transition in order to paying the main also the interest, from what is called dominant and attract (P&I) money.

An interest-only financing name is often the exact same duration as a basic financial doing 30 years. However, in place of paying dominant and you may attract for the full 30 years, you’ve got the solution to pay only attract toward first 5 years, such as, following pay much more on the kept twenty five years. Read more