Mortgages

There are many types of mortgage in existence. Which mortgage is right for you depends upon your circumstances and requirements.

The cheapest rate might not necessarily be the best long term prospect as other factors can control the amount you pay over time.

In the links below I have listed basic information for the main types of mortgage. Give me a call or complete my quick contact form to get a fee free consultation and I will find you a mortgage deal that's right for you.

Variable | Fixed | Capped | Tracker | Discount | Offset

Interest Only v Repayment

An important thing to consider is the repayment method for the mortgage. There are two basic types of methodology:

The repayment-type model which is the safe method guaranteeing that the mortgage will be repaid at the end of it's term (providing payments are maintained throughout the term of the mortgage).

The interest-only method which relies on another form of repayment for the capital at the end of the term.

Interest-Only Mortgages

These types of mortgages rely on a seperate source of repayment as the repayments only cover the actual interest that is being charged on the mortgage and no capital is repaid. This source can take the form of an endowment, an Individual Savings Account or other investment.

The aim is for the savings plan to grow sufficiently to meet full repayment of the mortgage at or before the end of it's term. There is an element of risk with this type of mortgage as there is no guarantee that the investment will generate sufficient returns to pay off the mortgage.

Repayment-Type Mortgages

The monthly repayment consists of both interest and capital. The end result therefore is that the full mortgage is repaid at the end of the term making this a safer option than an interest only mortgage.

Your mortgage statement each year will show the amount of the mortgage capital reducing as well as the interest that has been paid.

It is important to get help and advice when looking for a mortgage so give me a call or fill in my quick contact form and I'll call you.