Are Interest Only Mortgages Risky?

In this property education video, Simon Zutshi, author of Property Magic, founder of the property investors network (pin), and successful property investor since 1995 shares his answer to the frequently asked question Are Interest Rate Only Mortgages Risky?

Simon begins by highlighting how Repayment Mortgage or Interest Only Mortgage in 2023 is a popular topic, especially for Property Investing Beginners who are unsure which type of property investing Mortgages are appropriate for their Property Investing in the UK.

With a Repayment Mortgage Explained, he then goes through why there is more Interest Only Mortgage Investment Property. What is an Interest Only Mortgage Loan? Simon talks through why UK Property Investors often utilize Interest Only Mortgages, especially if you want to benefit from higher monthly Cash Flow from your Investment Properties.

Simon elaborates on Remortgaging Your Property being a key Property Investing Tip when Building Your Property Portfolio, the debt from the mortgages on your Property Investments is paid for by the tenants in your investment properties.

To summarize, when it comes to Repayment Mortgage Versus Interest Only, Interest Only Mortgage Rates are not risky, as long as you know what you are doing and have a strategy to repay your interest only mortgages at the end of the mortgage period.

Interest Only Mortgages in the UK are only risky if they are associated with Residential Property and you don’t have the correct Property Strategy in place to repay your interest only mortgage.