Aspect Learning Guide
Interest only
Interest only repayments reduce monthly repayments for a period, but the loan balance does not reduce unless extra payments are made.
Interest only explained in plain English
Interest only repayments reduce monthly repayments for a period, but the loan balance does not reduce unless extra payments are made.
How it works
You pay interest only for an agreed period.
Why borrowers use it
It can help cash flow for investors, construction or temporary strategy periods.
Important
The debt does not reduce unless you make extra repayments.
General information only: This guide does not take into account your personal objectives, financial situation or needs. Lending policy varies between lenders.