Still uncomfortable with the idea? Here’s the point that most people miss: having an interest-only loan doesn’t mean you can’t repay chunks of the capital if you want to. Yes, fixed-rate deals (to be explained shortly) will have an initial period when you’re penalised for overpaying, but after a while (when the fixed-rate period ends or you remortgage) you’ll be free to pay off capital at will. That’s truly the best of both worlds. Benefit from the extra monthly cashflow with an interest-only deal, let the cash build up in the bank, then you can decide to use those savings to pay off capital
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