Principal & Interest OR Interest Only repayments. Which should you choose?
30 October 2015 M'OR Mortgage Options
Depending on the type of mortgage you select, you can generally choose between making Principal & Interest (P&I) and Interest Only (I/O) repayments. A P&I repayment consists of two parts – an interest component and a principal component, whereas an I/O repayment consists of an interest charge only.
The main benefits and disadvantages of P&I and I/O repayments are outlined below.
If you’re still not sure which one might be best for you, let us know. We can help!