In relation to a loan, this is money still owed to the creditor at the end of the repayment period of an interest only mortgage

Interest only mortgages do not involve the payment of any of the principal of the mortgage Therefore it is necessary to have some sort of savings or repayment vehicle in place to pay off the cash deficit at the end of the mortgage term or through extra payments during the mortgage term.

A financial adviser can help with deciding the best investment vehicle to run a longside your mortgage, and a broker can help with obtaining the best mortgage for your circumstances.