We are here to help you understand your choices and to help you
make the right decision for your life journey.
This is the simplest type of mortgage. The payments you make to the lender every month pay off the capital and the interest of the loan. Provided you keep up with the payments you are guaranteed to pay off the loan by the end of the term agreed (usually 25 years).
The lender calculates your monthly repayments depending on the amount borrowed, how long for, the interest rate and how the rate you have chosen is set.
For many people interest only mortgages are called endowment mortgages or even ‘pension mortgages’. Strictly speaking these names describe an interest only only mortgage plus the method by which it is repaid. In other words an endowment mortgage is an interest only loan that is repaid by the proceeds of an endowment policy etc.
An interest only mortgage is where the lender (a bank or building society usually) only charges you interest on the loan you’ve agreed. You don’t pay the capital back until the end of the mortgage. The lender will usually ask you at the outset to provide an investment plan of one type or another to repay the loan at the end of the term, such as an endowment policy or ISA savings plan, but sometimes they will leave the repayment plan entirely up to you.
Every month you then pay this interest to the lender for the duration of the loan. The lender calculates your monthly repayments depending upon how the rate you have chosen is set. At the end of the loan period, the lender will expect the initial capital they lend you repaid in full by whatever means you have arranged.
We normally charge a fee of up to £500 depending on your circumstances. This amount becomes due of offer and we would normally accept payment on completion. We will also be paid commission from the lender.
Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured on it.
The first meeting is FREE. At this stage we cover two main areas. Firstly we go through with you the “Initial Discussion Document” which covers all the regulatory items that we need to explain to you as required by the regulator, the Financial Services Authority.
Following this, and only when you are happy to proceed, we would then gather all the relevant information from you by completing a “Confidential Mortgage Enquiry Form”. On its completion we would then be able to source for you at our office the best available mortgage package for you by using our Mortgage Sourcing system.
The second meeting would then be scheduled with you in order for us to give you our advice and make our recommendations to you based on your needs.
If you then accept the proposal we would then proceed by completing a full application on your behalf to the chosen lender.
All meetings can be done either face to face or by telephone depending on your circumstances.