The calculation is for illustration purposes only and may vary according to your personal circumstances and the mortgage provider. In addition to your mortgage, you will also be required to pay a rent on the unsold equity along with a service charge.
Interest only mortgage repayments are lower because you do not repay any of the capital owing. If you take out an interest only mortgage, you should consider an insurance or investment to ensure you are able to repay the capital at the end of the term.
Your home may be repossessed if you do not keep up repayments on your mortgage.