Pro’s and Con’s of UK Repayment Mortgages

Guaranteed to own your property outright Repayment mortgages have one huge advantage over interest-only or endowment mortgages. Once the mortgage term is complete, you are guaranteed to own your property outright. There is NO risk of not being able to pay off the mortgage, as long as you make all your payments. Unlike interest-only mortgages, […]

More About UK Repayment Mortgages

Repayment mortgages are probably the oldest and simplest type of loan around. Despite a number of new variations on the repayment concept having been introduced in recent years, the basic principles have not changed, and a repayment mortgage is still one of the best ways to purchase a home. A repayment mortgage is probably the […]

Frequently Asked / Common Questions About Interest-Only Mortgages

Here are some of the most commonly asked questions about interest-only mortgages. Q: Let me get this straight. If I take an interest-only mortgage, after 25 years of monthly payments, I will still owe the same amount I did when I took the mortgage, and until I pay that back my house could be repossessed? […]

How To Decide if You Should Get an Interest-only Mortgage

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 […]

The True Cost of an Interest-only Mortgage

People tend to choose interest-only mortgages because they think they’re cheaper than repayment (capital and interest) mortgages. And in the short term, this is true. You are repaying only the interest on the original sum borrowed known as the capital so the monthly payment is considerably lower than for a comparable repayment loan. However, this is only part […]

Should I Choose a Repayment or Interest-Only Mortgage?

(The two basic types of mortgage are: repayment (also called capital and interest) and interest-only.   Repayment mortgages With this type of mortgage, the monthly payments include a proportion of the original sum borrowed (known as the capital) as well as the interest – hence the alternative name of capital and interest. The Pros: Provided […]

Types of UK Mortgage

When buying a home in the UK you will need to select which of the various types of mortgage you want to use – and there’s a lot of them to choose from. However, almost every mortgage belongs to one of the following two categories. (It’s the many variations on these two which make things […]

Interest Only Mortgages

As the name suggests, with an Interest-only mortgage, the monthly payment includes only this element of the debt. The upside of this is that the monthly cost is considerably lower than for a comparable repayment mortgage. The downside is that at the end of the mortgage term you still owe the original amount you borrowed. […]

What are Repayment Mortgages

(aka Capital and Interest Mortgages) This is the old fashioned, traditional type of mortgage and remains the only way the property is actually guaranteed to be yours at the end of the mortgage term – provided you have repaid the loan. Your mortgage debt is divided into capital repayments (ie repayment of the money you […]

The Types of UK Mortgages

The two major UK mortgage types are: Repayment mortgages and Interest only mortgages When deciding what type of mortgage you want you would also mix in the various: Interest repayment arrangements Read On: Repayment mortgage