Many people are thinking about an Interest Only Mortgage at the present moment especially for the unhappy few have been fired Having your greatest outgoing bill cut drastically can bring you a huge relieve when times are more serious. In the property boom days you may have borrowed a large sum to get the home you wanted meaning you are left with not much option at the moment and need to go down the interest only path to be able to afford the repayments. Thinking long-term though you do need to think about how you will pay off the mortgage, a different repayment scheme should be in place to repay the mortgage. There are various options including relying on inheritance to pay off the mortgage, selling the house on later or a more functional solution is having an investment plan. You could work out the funds needed at the end of the term needed to pay off the mortgage and then save the right amount in an individual savings accounts or you could invest the money required in a pension. you could make a choice of changing the type of your mortgage in the future to a mortgage maybe when you have paid a chunk off the mortgage or your career prospects improve or your dependants have left home. Certainly at the moment with the base rate at 0.5% lots of people are opting for a repayment mortgage that you can overpay on. You can make the repayment amount the difference that you are now saving in repayments from when interest rates were at 5 percent so your aren’t paying out more than you are used to, shaving potentially years off your mortgage term. Interest only mortgages fashionable among first time buyers who can struggle with the mortgage repayments at the beginning but once they are in benefiting from increasing pay packets and a lower mortgage can then consider moving back to a repayment mortgage. Do remember to look at the ancillary costs that many mortgagelenders can charge for moving suppliers.

Sebastian Jones is a writer for top 10 mortgages and has researched the matter exhaustively. Different mortgages of interest might be a 95% mortgages