A mortgage in which the borrower repays only the interest for a specified initial period.
if your income is likely to be rising then you may select a low-start mortgage
Example sentencesExamples
The cost of a low-start mortgage eventually catches up and overtakes the cost of a 'regular' mortgage.
This is a low-start mortgage with monthly repayments increasing annually in the first ten years.
He noted that an important feature of the Low Start Mortgage is that everyone will be able to meet the repayment strategy.
I spent a couple of days considering the options, cancelling all pension contributions, and taking out a renewed 30-year low-start mortgage.
Special low start mortgages rate offers, 2-year fixed deals, and mortgages that allowed borrowers to roll up credit card and other debt with home loans abounded.
If you borrow £150,000 on one of these low-start mortgages (25 years), at 3.19 per cent up to 75 per cent loan-to-value, you need to work out how the numbers stack up.
Based on its research findings, the bank has put together a package for first-time buyers that includes flexible repayment options, including deferred start mortgage and low-start mortgage.
Other products include a 'low start mortgage' for couples who get divorced, which offers stepped monthly payments which are kept at low levels for the first two years.
Low Start mortgage tempts borrowers with cheap interest-only fix, but a sting in the tail sees payments rocket after three years.
Borrowers taking the Low Start Mortgage will have an initial 3-year fixed rate on interest-only terms with affordability based on capital and interest to ensure payments are sustainable for the life of the loan.