"The Easy Way to Get Your Best UK Mortgage" |
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Mortgage Guide
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Types Of
Mortgage
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Interest-only mortgages decisions.
How to decide if you should get one
If you still want to borrow interest-only, ask yourself the following questions first
• Am I clear about the long-term risks and costs of not setting up a repayment vehicle right away?If you can't clear the full debt when the time comes, you could lose your home.
•
Can I afford to take the same mortgage on a repayment (capital
and interest) basis even if it means cutting back on other
spending for a few years?
Going for repayment is cheaper over the long term because
there's less interest to pay and the capital debt will be
cleared without you having to take on an expensive and risky
investment plan.
•
Could I afford a repayment mortgage if I increased the term
from, say, 25 to 30 years?
This will increase your total interest bill, but at
least it will mean your entire debt is cleared without having
to worry about a repayment vehicle.
•
If I really can't afford a similar size of repayment loan,
can I find a cheaper, less risky way to keep my costs under
control?
It could be worth buying a slightly cheaper property
if it would enable you to afford a repayment loan. You can
always trade up when your financial situation improves.
•
Do I understand the various types of repayment vehicle and
the costs and risks involved?
Possible repayment methods include investing in a stocks
and shares Isa (individual savings account), saving into
a high interest bank or building society cash Isa or selling
other property.
Most experts agree that saving into an endowment policy
or a pension plan for this purpose is not a good idea.
For more on this, see The
endowment mortgage and The
pension mortgage.
If you are still determined to take an interest-only mortgage, look for one with flexible features, that allows you to make additional one-off payments when you can afford them, to reduce the capital sum.
And make sure you consult an independent financial adviser before settling on a repayment vehicle this is a costly and uncertain, long-term commitment, so it's essential to choose wisely.
Read on about Interest Only mortgages
Should I choose repayment or interest-only?
How to change from an interest-only to a repayment mortgage.
The true cost of an interest-only mortgage
How to decide if you should get interest only
Are interest only the new endowment mortgages?
Best Buy Tables for Interest Only Mortgages UK
Frequently asked / common questions about interest-only mortgages
Read our complete guide to interest only mortgages
Read on
What went wrong with endowment mortgages?
What should I do with my endowment mortgage?
How to make up an endowment shortfall
Was I mis-sold my endowment mortgage?
How to complain about an endowment
Endowment mortgage claims: a legal loophole
Can I claim endowment compensation?
Am I too late for endowment compensation?
Help making a complaint about your endowment mortgage
Read On about
Fixed
Rate
Capped
Rate
Discounted
Rate
Read On
Interest
only mortgages
Interest
repayment arrangements
Read On / Mortgage Guide
Choosing
a Mortgage
Different Mortgage Types
Re
Mortgages
How to Find your Mortgage
Mortgages in Principle
Read On
Guide to Buying Home in the UK
Guide to UK Home and Mortgage Insurance
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here to see your Latest Best Buy Mortgages
Back to A to Z Mortgages UK List
Read more about Types of Mortgages
See contents of Full Mortgages Guide
See contents of Home Buyers Guide
I've read enough for now and want to get a free Quick Mortgage Quote
The
two major varieties:
Repayment
mortgages
Interest
only mortgages
Then
mix in the various:
Interest
repayment arrangements
Finally,
to cover all the different types there's a
Complete
A-Z of mortgages
Complete A-Z
All UK Mortgage types
100%
Mortgages
Base
Rate Trackers
Bridging
Loans
Bad
Credit Mortgages
Buy to Let
Calculators
for Mortgages
Cashback
Mortgages
Capped
Rate
Costs
of a Mortgage
Current
Account Mortgages
Discounted
Variable Rates
Equity
Release Mortgages
Endowment
Mortgages
Expatriate Mortgages
First
Time Buyer Mortgages
Fixed
Rate Mortgages
Flexible
Mortgages
Group
Mortgages UK
Interest
Only Mortgages
ISA
Mortgage
Key
Worker Mortgages
Mortgages
in Principle
Part
and Part Mortgages
Pension
Mortgages
Prime
Mortgages
Repayment
mortgages
Shared
Ownership Mortgages
Standard
Variable rate
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Mortgage
Basics
How
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Types of Mortgage
Where to Find Your Mortgage
Getting a Mortgage in Principle
