An interest only mortgage is another type of equity release loans. It is also a way of releasing equity but the difference between lifetime mortgages and interest only mortgages is that this type of loan requires the property owner to make monthly repayments for the lifetime of the mortgage. The reason for these repayments is that in interest only mortgages, the borrower must be able to pay the monthly interest to the lender and not the capital. Therefore, there is a monthly repayment, but the monthly repayments can be relatively affordable because it is only the interest that you will be going to pay.