Deferred Interest
The Deal:
A deferred interest rate mortgage allows you to make lower repayments than the actual rate of interest charged for an agreed period of time. The difference between what you would have paid normally and the amount you actually paid, is then added to the capital sum of your mortgage.
Disadvantages:
This can be a very expensive way of arranging your loan as interest is charged on the deferred amount of interest in addition to the original capital borrowed.