This is one of the easiest to understand as well as most secure ways of repaying your mortgage debt. With each monthly repayment you pay off a proportion of the underlying debt as well as interest on the loan. At the end of the mortgage term the debt is cleared.
Most mortgage lenders will allow over payments on the loan up to a specific limit, usually around the 10% per year mark. Please make sure that your mortgage professional explains if your loan is on a daily, monthly or annual calculated interest rest. If you have a daily rest mortgage and make an over payment, then your over payment amount will come straight of the capital amount. On the other hand, if your loan is calculated on an annual rest, then an over payment will not take immediate effect. It is very important to understand your mortgage and to make sure that the loan suits your personal situation.
How the interest is calculated has a bearing on your loan so please make sure that you ask your mortgage professional about this.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
With an interest only mortgage you only pay the interest on the loan. At the end of the term, you will still have the full loan amount outstanding. Interest only loans are popular with buy to let investors as they are cheaper than a repayment mortgage. This type of mortgage needs a repayment vehicle running alongside the loan to ensure that the loan gets repaid at the end of the mortgage term. Your mortgage professional will help you select the most suitable mortgage repayment type after assessing your needs.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
An endowment policy is used to provide life insurance as well as save funds to repay the mortgage at the end of its term. If the investment performs badly, you could face a shortfall at the end of the mortgage term. Relatively few endowments are sold today as they were mis-sold in the 80’s and 90’s.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Each month you will pay the interest of the loan to the lender. The loan is repaid from the tax free lump sum that both private and company pensions provide on retirement. This repayment type is tax efficient but there are other risks to consider. A pension is intended to finance your retirement so you will need to take advice and consider whether this mortgage is right for you. There is also no guarantee that the tax free lump sum will be enough to repay your mortgage at the end of the term.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
An ISA mortgage works similarly to an endowment mortgage in that it combines the loan and an investment. This mortgage type is flexible as well as being tax efficient but there is once again no guarantee that the investment will grow sufficiently to repay the loan in full.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.