Business and Personal Finance Dictionary

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• INTEREST-ONLY MORTGAGE
  
  Monthly payments to the lender are made up simply of interest. You don't pay off any of the capital of the mortgage during the term of the mortgage, but do so at the end, having accrued a large enough pot of money in an investment fund. Classically, these investment funds have been endowments, but we're pleased to say that ISAs are increasingly being used.
  
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