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More and more people are accepting the idea of interest only mortgages. Of course, who wouldn't want to pay only for interest rates for the first few years of their mortgage? The idea of paying only a very small amount on your mortgage of course has its advantages and disadvantages. Read on and see if the advantage will outweigh the disadvantage for this type of mortgage.

The first advantage in interest only mortgages is better purchasing power. That means that you can have a wider selection compared to those that require you to pay even more. Couples can have a bigger home for their family since they really don't need to be burdened with a very high monthly payment. You can be assured that for the first five to ten years, you only pay a very small amount for your property. Even though you are not reducing the principal loan, you are still assured that you get to keep a great house.

Interest only mortgages will also work for people who have projected or predicted something big in their life. It could be an inheritance, a higher paying job or a successful business after a few years. This could be a risky move but people who know more than others can grab this opportunity and work their way to the top while not paying for something higher. They can even get a post graduate course and instead of paying for the mortgage, they will only pay for the interest and some of the money could go to tuition. By the time they will be required to pay for the principal amount, they already have a post graduate degree and a high paying job because of this qualification. A person who dreams to make it big and knows how to do it is the perfect candidate for this kind of mortgage.

This is also a trick, but some people who use this kind of mortgage don't have a plan in staying there for the rest of their lives. They will only pay for the interest for a few years and after that they will sell the house. Even though they will get nothing since they haven't paid anything at all, it's still worth it. It's like paying the rent for many years with an interest rate.

The disadvantage of this type of mortgage is it's too risky for some people. If you don't have a clear inheritance coming in a few years, you can't just say you can pay it on time. Most of the time; people who want this payment term have the projection of becoming something big. Unfortunately, not all of them can realize their dream when the required year of payment comes. In the end they will lose their homes and end up with a bad credit rating.

If you know you are on the road to success or to wealth, and have a clear path to do so, you can have this type of credit. If not, you need to rethink of what you can do to pay for this type of mortgage.

Imran is writer and webmaster for UK's online finance site http://www.1mortgagesuk.co.uk To lear everything about interest only mortgages and all other types of mortgage and loans, please visit our website.