Mortgages

We are a family run mortgage broker who acts on your behalf.  We are not tied to one particular lender 

 

Given the variety of options you will face when taking out a mortgage, doesn’t it make sense to seek professional advice on possibly the biggest financial commitment you are ever likely to make?

We firmly believe in the benefit of advice and work closely with a panel of major UK lenders to provide a wide choice of products, including some which are designed exclusively for our customers.  We can provide you with advice and a recommendation for your mortgage and in addition to this we can help you in other areas associated with buying your home. 

How do Mortgages Work? 

Repayment Mortgage 

The most appropriate repayment method for a residential mortgage is capital repayment.  Monthly payments are made up of interest charged on the amount borrowed and a portion of the capital to repay the mortgage.  During the early years most of each month’s payments are interest and it is only later on that you start to repay any significant element of capital.

 Advantages 
  • The mortgage is guaranteed to be repaid at the end of the term providing that payments are maintained.  You can see the mortgage reducing each year (albeit very slowly in the early years). 
Disadvantages    
  • It does not contain any form of savings, so there is no possibility of additional return or early repayment.  However, the mortgage could be repaid early if payments are increased.  
  • You may need to take out separate life cover to ensure the mortgage can be repaid if you die.  You should consider the benefits of protecting your income, should you become ill and be unable to work. 
Interest Only Mortgage 

Monthly payments to the lender consist of interest only and the outstanding mortgage remains the same.  You make payments to a separate investment with the aim of producing enough capital to repay the mortgage in full at the end of the term.  There are a number of different investments that can be used.  You can also use a combination of them.

If a credible repayment method isn’t put in place you may need to sell the property and downsize to repay the mortgage.  By not having a repayment vehicle you increase the risk of negative equity (where your outstanding mortgage is higher than the value of your home).