Advantages of interest only mortgages
The big advantage of interest only mortgage is that the borrower does not have to pay large amounts of money.
This is because he will only be paying for the interest. Compared to the amount that he would have to pay if he were paying for the principal plus the interest, this is relatively small and definitely more manageable.
As a result of this fact, a borrower has more options when it comes to what house or property he wants to buy. Because he does not have to pay the principal, he can opt to buy a bigger house or property.
Another result of having only to pay off the interest with an interest only mortgage, a borrower can free up some of this cash to use it for other worthwhile pursuits. For example, he can take a post graduate degree or start a small business with the money that would have been used for the mortgage had it not been an interest only mortgage.