Lifetime Mortgages Explained:
Interest only loans
Interest only loans are similar to rolled up interest loans in that you borrow an amount against the value of your house or property, this gives you access to a cash lump sum. However, with an interest only loan you will normally have to make monthly repayments to cover the interest charges, but you will not have to pay back any of the original capital borrowed until your home is sold.
Pros: Access to a cash lump sum
Cons: You will have to make monthly interest repayments until the property is sold. It can be difficult to find a suitable scheme.
Other Types of Equity Release Plans:
Life Mortgages
You may also want to consider a Home Reversion Scheme, clcick the link the to find out more.