For some borrowers, trying to find and select the most suitable mortgage can be stressful and time consuming – no wonder moving home is apparently the most stressful undertaking most of us make in our lifetime. After all, the average home in the UK last year cost just over £226,000. That’s a lot of money in anyone’s book.
Working with us means that you’ll benefit from our advice, backed by years of practical experience, to help select a mortgage product that sits in line with your objectives and attitude to risk.
Banks, building societies, and smaller niche lenders are all competing for your business, and they offer a variety of interest rate deals, associated fees and other enhancements to attract you. As financial advisers we can work with all lenders in the market, giving you the maximum benefit.
For a quick decision contact us now on 01738 628191 or alternatively complete our On-line Enquiry Form below.
The two most common methods of repaying a mortgage remain interest-only or capital and interest repayment.
With this type of mortgage you repay month-by-month only the interest due on the amount borrowed. The capital sum advanced will still be outstanding at the end of the agreed term. Therefore you will usually need to take out some kind of investment policy to run alongside the interest-only mortgage, which will hopefully save up enough money to repay the capital at the end of the term.
Mortgage endowment policies (which included a set amount of life cover) were popular for some time, but many failed to deliver the anticipated returns and customers recently have been considering Individual Savings Accounts (ISAs) or pensions, to build up the required capital sum while taking advantage of the tax breaks offered by these products in the interim.
The risks involved in not meeting the capital amount needed mean this type of product is not for everyone, but the monthly overheads are lower than a capital and interest repayment mortgage.
Under the repayment method your monthly payments will be higher as they comprise both interest and an amount to cover the capital advanced, over the term of the mortgage agreed. With this option, the good news is that the amount of money you actually owe decreases over time.
This method ensures that the mortgage is repaid at the end of the agreed term, providing all payments are made on time and in full.
Your home may be repossessed if you do not keep up repayments on your mortgage.