Interest Only Mortgages
An Interest Only Mortgage is one whereby your monthly payments consist solely of interest payment and not any capital repayment element. Therefore the balance size of your mortgage will remain the same, and will not be reduced at all by your monthly payments.
If taking out an interest only mortgage, you must consider how the mortgage will be repaid at the end of the term. Interest only mortgages 'should' be supported by a suitable repayment vehicle, so that the mortgage balance may be paid off in full at the end of the term. It can be useful for people purchasing a new property to pay interest only over an initial period, to keep their repayments low whilst setting up home. It is then possible to switch on to a repayment option when the time is right, so that you have the certainty that your mortgage will be repaid in full at the end of the term. It is important to note that should you fail to pay off your mortgage (in full) at the end of the term, your home may be repossessed.
Another popular use of an interest only mortgage is for Buy To Let or investment properties i.e. any property that is bought with the intention of selling it on for capital gain within the short to medium term.
To help you find the right interest only mortgages deal to meet your unique and specific needs, it is of great importance to obtain Independent Advice from a fully qualified Independent Mortgage Adviser, who works for you, not for a restrictive panel of lenders.
Interest only mortgages are not suitable for all borrowers. Borrowers must be aware that if / when switching from interest only to capital and interest repayment, monthly payments will increase.
There is also an increased risk of a negative equity situation occuring. You must also understand that there will be more interest payable than if you started on a repayment only to begin with. It is important to ask for detailed advice on interest only mortgages from a qualified adviser.
Following the completion of our simple mortgage enquiry form, your enquiry will be electronically allocated to an independent mortgage adviser. They will guide you through the mortgage advice process in a clear and transparent manner. The information provided will allow them to begin to source the most appropriate mortgage for you.
You will be instantly notified by e-mail of any additional information required, using an easy to complete mortgage questionnaire form. All information will be contained on a secure server, and will remain confidential between you and your adviser.
We like people to remain in control, so the preferred methods of contact are both phone and e-mail. It can be arranged that an adviser can come to see you in person at your request, but find that most clients prefer to work remotely.
Once the adviser has obtained the information they require to find you the most appropriate deal, he / she will source from the whole UK market using in-house regularly updated mortgage sourcing software. He / she can e-mail or post recommended product illustrations for you to look over (or may be available to provide a face-to-face advice appointment with you).
We believe that regulated service is the best service!