The following mortgages repayments types are available at Peter Morgan Financial Services
A repayment mortgage guarantees your loan is paid off in full at the end of the agreed mortgage term.
With a repayment mortgage your monthly repayments consist of interest and capital repayments. By this method you reduce your outstanding mortgage balance with every payment made.
The repayment mortgage will pay off the mortgage at the end of the term providing all repayments due have been paid to the lender.
With an Interest Only mortgage you only pay the interest on the loan and none of the outstanding capital. The capital is therefore still outstanding at the end of the term. A repayment vehicle such as an ISA should be considered.
It is your responsibilty to ensure that you have sufficient funds to repay the balance of the mortgage.
Interest only mortgages can be more risky as there is no guarantee the chosen repayment vehicle will repay the outstanding balance at the end of the mortgage term.
With a split mortgage a portion of the loan is treated as interest only with the remainder on a repayment basis. If you have an existing repayment vehicle in place before seeking a mortgage you may want to consider this option.
This type of mortgage is popular with people who already have an investment policy in place prior to applying for their new mortgage and wish to continue using this on their new mortgage.