The product that never lays a course.
Scroll this page exactly as you scrolled the home page. It is the same drawing, the same 300 months and the same arithmetic, and the fill does not move once, because on an interest-only mortgage the balance does not move once.
£986 a month against a balance of £256,050 that is still £256,050 in month 300.
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Completion. Five courses.
Identical to every other product on this site: the deposit, and nothing else. £986 a month covers the interest on £256,050 exactly.
Month 60. Five courses.
Five years and £59,148 of payments later, the elevation has not laid a single brick. Every pound went to the lender as interest, because that is precisely what was agreed.
Month 120. Five courses.
Halfway to nowhere. The outstanding balance is the number it was on completion day, to the penny.
Month 180. Five courses.
This is not a fault in the drawing. It is the product: the payment is rent on the capital, and the capital is untouched.
Month 240. Five courses.
Sixty months left to find a repayment vehicle that clears the whole balance, if one was not arranged at the outset.
Month 300. Five courses, and £256,050 due in one payment.
The balloon. Interest only can be the right answer for a let property or a bridging case, and it is the wrong answer for most people who ask us about it. We will say which one you are.
Why this page exists
A drawing that can only ever show progress is decoration. This one can show its absence, and it does, which is the only reason to believe it on the other pages. Compare it with capital and interest.