Mortgages

mortgage advice

Obviously you have realised by now that there are loads of deals available for your mortgage, some of the areas that you have to make choices on break down into a number of different areas: (see links on the right)

 

Types of Mortgages

Mortgages seem simple enough at first, you borrow money to buy a property and repay that loan over a number of years. However, after a few enquiries the whole process can be a lot more baffling.

Mortgages are an extremely competitive market with banks and building societies all offering different deals and options. Different mortgage options include:

  • Repayment mortgages — this means you pay off both the interest and the underlying debt each month. At the end of the mortgage term the whole debt will be cleared.
  • Endowment mortgages — this mortgage has two parts, a monthly interest payment to the mortgage lender and a monthly payment into an endowment policy which is mainly invested in stocks and shares. If the investment performs badly you may face a shortfall on your loan at the end your mortgage term.
  • Interest only mortgages — With an interest-only mortgage loan, you pay only the interest on the mortgage in monthly payments for a fixed term. None of your capital debt is being repaid directly. After the end of that term, usually five to seven years, you either refinance, pay the balance in a lump sum, or start paying off the principal debt.
Information and opinions expressed on this site do not in anyway contstitue, or proport to be, financial advice. As in all financial matters you should seek the advice of a specialist.