REPAYMENT METHODS
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Repayment Mortgage
A Repayment Mortgage (also known as a Capital and Interest Repayment Mortgage) is in recent years the most common type of mortgage. It is a low risk Mortgage because as long as the monthly payments are met in full for the term of the mortgage repayment of the loan is guaranteed.
Each monthly a mortgage payment is made to the lender which consists of part Interest on the capital balance outstanding and part capital to be repaid off the balance.
In the early years of a repayment mortgage a large portion of the monthly payment is made up of interest and the capital balance reduces slowly. In the later years the monthly payment is mostly capital to be repaid and the loan reduces more quickly.
This type of mortgage is suitable for someone who does not want to take any risks with the repayment of their mortgage and wants a guarantee it will be repaid in full at the end of the term.
INTEREST ONLY MORTGAGES
An interest only mortgage is where the borrower only pays the lender interest on the loan each month and at the end of the term the full amount of the mortgage is still outstanding.
In most cases the borrower needs to arrange something known as a Repayment Vehicle to generate the funds required to repay the loan at the end of the mortgage term. The Repayment Vehicle must be acceptable to the lender. Examples of
Examples of acceptable Repayment Vehicles are an ISA, a Personal Pension or an Endowment Policy.
All of these are investments where the performance is not guaranteed and for this reason the repayment of the mortgage is not guaranteed. It is possible at the end of the mortgage term if the investment performance of the repayment vehicle has been lower than forecast there may be insufficient funds to repay the mortgage loan in full. If investment performance has been better than forecast there is the possibility of a surplus after the mortgage has been repaid. This type of mortgage is not suitable for those who are risk averse.
Flexible Appointments
We understand in this modern world life is no longer 9-5 so we offer flexible appointments to suit your needs.
Our Advice
Our initial meeting is free of charge. There is no obligation to use our service. We will only charge if you decide to go ahead and use our services.
The right Mortgage
We will make a full assessment of your needs, priorities and goals and then recommend the right mortgage for you
The right Protection
Having gathered all the information about you, your circumstances and your home, we will provide advice and recommendation on the right protection for you.
Getting you there
We are not just here to arrange your mortgage and protection. We will support and guide you through the home buying process right up to the day you get your keys
The future
We will be here to provide you with help, guidance and advice from re-mortgaging to home moves in the future as your circumstances change.
If you are experiencing financial difficulty and struggling to make repayments, then you can contact your lender who may be able to help taking account of your individual circumstances.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
You may want to contact one of the free impartial money guidance and debt advice services such as StepChange, Citizens Advice, or Turn2Us.