This is what lenders charge you for the use of their money.
Interest only loan
This type of loan is short term, one to five years, where only the interest is paid during the agreed term.
The rate at which interest is applied.
See our glossary item ‘Honeymoon Rate’.
The owner does not live in an investment property and the property is purchased simply for earning a return on the investment, which can be in the form of capital gain or rent.