Let's put one thing straight...mortgages can be very simple to
understand or they can be made to seem very complicated because of the
amount of jargon that can be used.
About Mortgages knows that it is our job to help you understand
not only what type of mortgage you have but why it is the one that is
right for you. In this section, we will try to give you the basics,
however please do not hesitatefill out a
Request For Advice and we will contact you at a time that is
convenient for you to discuss the best mortgage for your needs.
Please ensure that you read the
Key Facts About Our Services document to decide if our services are
right for you.
Repayment Methods
No matter what you may have been told, there are only
two types of mortgage - Interest only and Repayment.
Interest Only -
you pay just interest every month on the amount you've borrowed ('the
capital'). At the end of the mortgage term (usually 25 years) you'll be
asked to repay the capital in full - so if you've borrowed £ 70,000 and
make the minimum monthly payments , you'll still owe the lender £70,000
at the end of the term. Most people use the proceeds of an investment
plan to repay the capital. Bear in mind that problems can arise if your
chosen investment doesn't perform sufficiently well to allow you to
repay your mortgage. But if the investment performs better than
expected, you may end up with some extra cash after the mortgage has
been repaid.
Repayment - here,
you pay off the mortgage as you go along, as well as paying interest.
So, by the end of the mortgage term, there's nothing left to repay. This
is often seen as the safer option, particularly in these times of low
interest rates and investment returns, but there's no potential windfall
at the end of the term.
All the other terms you may have heard (fixed,
discounted etc) refer to the variety of ways in which lenders can charge
you interest or some of the options that they may offer on your mortgage
account (flexible mortgages, offset mortgages etc)
Types of mortgage deal...
About Mortgages Ltd
Registered in England & Wales No 5170864.
The guidance and/or advice contained within this website is subject
to the UK regulatory regime, and is therefore targeted at consumers
based in the UK.
About... Mortgages 
