Mortgages

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Repayment Mortgages

Repayment Mortgages are the more traditional and more popular type of mortgage today due to the cautious attitude that people have when it comes to risk and protecting their home and rightly so. The Repayment Mortgage offers the most straightforward and simple approaches to repaying your mortgage as you start paying off the interest and the loan itself from the get go, however at first much of the monthly payment will be used to pay off the interest on the loan, over the years this is reduced and more of the capital is paid off. This would continue until the full loan amount is paid off by the end of the chosen mortgage term.

Interest-Only Mortgages

These are more of a risk than your standard repayment mortgage. The monthly payment to the lender is lower, as you are only paying the interest on the loan with the original loan amount borrowed not having to be repaid until the end of the mortgage term.

Money will have to be available to pay off the loan at the end of the term. A separate investment savings plan is normally set up, like an ISA. However remember that you can’t guaranty that the savings that you invest will grow enough to repay your loan at the end of your chosen loan term and that you could find that you end up with an outstanding debt.

Buying your first home or moving home should be an exciting event in your life, our aim is to make this transaction run as smoothly as possible, and we will guide and update you from start to finish.