Using an independent mortgage broker (also known as independent mortgage advisers) gives you tailored, expert mortgage advice, for the maximum chance of finding the best mortgage deal for your needs. We would love to provide our expert advice as your mortgage broker. Please feel free to contact us for further information.
Buying a property can be a stressful and time consuming experience, although nowadays the financing of a mortgage is a case of finding and selecting the most suitable deal on the mortgage market, rather than simply accepting a lender’s offer.
Hundreds of banks, building societies, and smaller niche lenders compete for your business, all offering a variety of interest rate deals, associated fees and other enhancements to attract borrowers – so it is important that you receive the right advice and guidance.
There remain two main methods of repaying a mortgage loan, and it is possible to set up the mortgage on a ‘part repayment and part interest only’ basis. A description of these methods is provided below.
Under a repayment mortgage your monthly repayments consist of both interest and capital hence, over time, the amount of money you actually owe will decrease.
In the early years your repayments will be mainly interest and therefore the capital outstanding will reduce slowly in the early years.
Whilst this method ensures that the mortgage is repaid at the end of the term providing all payments are made on time and in full, it is generally more expensive at the start.
Interest rates can of course effect your monthly repayments, it’s wise to look at the current interest rates and select the appropriate mortgage for you. We can offer whole of market advice making sure we give you the very best options when getting a mortgage.
As their name suggests, with an interest only mortgage you only repay the interest on the mortgage. At the end of the term the capital is still outstanding.
Therefore you will usually need to take out some kind of investment policy to save up enough money to repay the mortgage at the end of the term.
Traditionally the preferred product for repaying the capital of an interest only mortgage was a mortgage endowment policy (which included a set amount of life cover) – although more recently customers are using Individual Savings Accounts (ISAs) and pensions to build up a sufficient sum and taking advantage of the tax breaks offered by these products.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The Financial Conduct Authority does not regulate some forms of mortgages and ISAs.
We offer the option to pay for mortgage advice by way of a fee which is typically £395. If you chose this option any commission payable by the lender would be offset against this fee.