Risky Business: The Bad Credit Interest Only Mortgage
Before committing yourself to any financial product, it is essential to weigh up the pros and cons and make sure that you are certain that it fulfils all your wants and needs. This is especially true when you are signing for a mortgage because 25 years is a massive commitment. Check out all of the products available to you. One of the variations of mortgage product that is available for someone with a less than perfect financial history is the bad credit interest only mortgage.
The bad credit interest only mortgage was popular n the 1970s and 1980s because it was sold with an endowment policy as well. The endowment was designed to grow over the years and pay off the outstanding balance at the end of the period, whilst the interest only mortgage paid off the interest over the period. As we all know, it did not quite work out as planned for many and still poses a risk today if it is sold with an ISA or other savings plan, but this kind of arrangement is perfect for those individuals with existing financial commitments that want to buy their own home.
A bad credit interest only mortgage is designed for those with bad or no credit and can provide another excellent mortgage product option to consider, but it is essential that you talk to a mortgage adviser before committing to such a product because a little advice goes a long way and can also help you to locate the best deal!