"Interest-only mortgages, under which the principal sum borrowed only
becomes payable in full at the end of the term, were popular in the last
property boom as lenders became less strict about the repayment
The days of the 'interest-only mortgage' appear to have fallen by the wayside. Historically mortgage lenders would lend you the money and only require you to payback the interest of the loan each month. The idea was that the borrower would simultaneously be stashing money away left, right and centre into some sort of high interest savings account
, endowment or stocks.