Mortgage repayment options
The product with the most competitive rate is not necessarily the best mortgage for you. There are quite a number of other factors that may come into consideration when you are making your choice.
While the rate may ultimately be the overriding factor that sways your decision, you should at least familiarise yourself with the other aspects of your chosen product, to make sure you are not blindsided by some unexpected cost or restriction.
Aside from the rate, the key decision you have to make is between a repayment or interest only mortgage – you are either paying only the interest on the money you have borrowed, or both the interest and a portion of the capital.
Capital and Interest Repayment Mortgage
With a repayment
mortgage your monthly repayments cover both capital and interest on
the loan. No other repayment vehicle is needed, but your lender may
insist on life insurance in case you die before the mortgage is
Interest Only Mortgage
With an interest only mortgage,
your monthly payments to the lender cover only the interest on the
loan (i.e., they don’t repay any of the capital). The full amount
of the loan has to be repaid to the lender at the end of the term.
How to receive your free mortgage illustration
Experienced, qualified advisors who arrange the best mortgages available handle all enquiries. They have access to every UK mortgage lender and will only approach the lenders who can offer you the best deal, saving you time and money.
To receive your free mortgage illustration, you just need to enter some basic information into one of our online enquiry forms.
Either way there’s no obligation, no credit checks will be performed without your consent and there are no brokers fees to pay. Your advisor will reply within 24 hours with illustrations of the best mortgages available from the whole marketplace.
Or if you prefer, you can call a fully trained mortgage advisor on 0845 490 0419. It will only take a few minutes of your time today but could save you thousands of pounds in interest payments and will eliminate any worries you may have about getting the best deal possible.