Buying a home is the most expensive purchase we will ever make.
An Interest Only Mortgage can have many benefits. However, taking on an Interest Only mortgage could be damaging to your financial situation as you will never own your own home and your circumstances may change quickly, particularly if you are self employed.
Normal repayment mortgages are dealt with by paying off the interest on your mortgage each month, as well as some of the capital you borrowed. This scheme allows property owners to slowly pay-off their mortgage before eventually owning the property.
Interest Only mortgages are different, you will never own the house, and still have the entire mortgage outstanding at the end of their term. If you were ill-advised to take an Interest only mortgage when it was not suited to you, you may be eligible to make a claim.
What should your mortgage adviser have checked?
If you were advised to take an interest-only mortgage, your mortgage adviser needed to make various important checks before advising you to enter an interest-only mortgage. Interest-Only mortgages only work if the client has the ability to save or gain the money to pay off the investments at the end of the term. Your mortgage advisor has a responsibility to check if you will have the ability to do so.