There is such an array of different mortgage products available that it is easy to become confused: choosing the mortgage with the lowest headline interest rate may not be the best option, if booking fees and arrangement fees, compulsory insurances, a higher lending charge and early repayment charges are also involved. Therefore, it is absolutely essential that you seek professional advice to try to ensure that the mortgage product you finally select is most appropriate for your circumstances.
A flat fee of £250 will become payable at outset. In addition, we will retain any commission paid by the lender.
There are two ways of repaying your mortgage. These are briefly outlined below:-
You borrow the amount you require to help purchase the property over a fixed term. You pay interest and some of the capital to the lender on a monthly basis. This is the only method which, assuming repayments are made in line with the lender's requirements, guarantees repayment of the loan at the end of the fixed term. However, this method can be slightly more expensive than an investment linked mortgage and only a small amount of the loan is paid off in the early years.
Your payments to the lender will only represent the interest charged on the loan and do not include capital repayment. The original loan will need repaying at the end of the mortgage term, so you will need to arrange some form of investment plan, designed to generate sufficient funds to repay the loan at that time. You can choose from various investment plans, such as ISAs, which have tax advantages, an endowment policy or pension plan. If you move house or arrange a re-mortgage, your plan can usually be re-allocated to the new loan. You must remember that the outstanding debt will not reduce over time and that there is no guarantee that your investment plans will grow sufficiently to repay the loan on time.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Written quotations are available upon request. Loans are subject to status. A deposit or life cover may be required.