An interest-only mortgage lets you decide how you want to spend your money.
Do you anticipate steady income growth in the future and feel it would make more sense to have a lower payment now?
Or maybe you would prefer to put funds into remodeling your new home and increasing its long term value. Bank of England offer a SecureCombo home mortgage which frees up your cash, letting you decide how to spend your money.
Pay only the interest each month (without any penalties), or pay interest plus principal; as much or as little as you like.
Deferred repayment. You have a fixed amount of time (3, 5, 7 or 10 years) before you are required to begin paying back the principal. Then, payments include interest plus a portion of the principal loan amount.
One of the many benefits that Bank of England offers is that you can refinance your Interest-Only to a Fixed Rate Mortgage at any time without any pre-payment penalties.