Types of Mortgage

A key question you should ask yourself is what is the best way for me to repay my mortgage? Here are some of the types of mortgage that we can arrange for you:
  • A Repayment Mortgage is one where the monthly sum you pay to the lender is partly a repayment of the outstanding debt and partly interest on the outstanding loan. The amount of capital paid off each month usually increases as you get towards the end of the mortgage term and of course the size of the outstanding debt reduces month by month.


  • An Interest Only Mortgage is one where your monthly payments cover only the interest on the loan amount. You then need to repay the loan amount separately. This can be done by a separate investment, such as an ISA, endowment policy, PEP or pension, or a combination of these.


  • A Flexible Mortgage is one that allows you to vary your monthly payments, giving the borrower the option of underpaying or overpaying, without any penalty, depending upon their financial circumstances or needs. Flexible mortgages also allow the borrower to consolidate his or her borrowings in a single account, often with a chequebook provided. Bank loans, credit card loans and overdrafts can all get lumped in with the mortgage with the advantage that you only pay a single interest rate.
equity release schemes

These allow you to access money tied up in your home in old age without having to sell your property and move on. The scheme provider either allows you to take out a further loan on your property or actually buys a proportion of your home and pays you a regular income or a cash lump sum. When you die your property is sold to repay the loan and any accrued interest; what is left over is then passed on to your estate.

re-mortgaging

Re-mortgaging your home can often be beneficial if your current mortgage was taken out when the terms offered by lenders were less favourable or if you want to release some equity in order to build an extension, conservatory or other addition to your home and by moving lender you can get a better interest rate.

contact us
If you have specific questions about the types of mortgages available or which lenders can provide them or would like to arrange an appointment to discuss your needs please contact us now.


Your home is at risk if you do not keep up repayments on a mortgage other loan secured on it.


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