Repayment

How does it work?

You borrow a lump sum over a fixed period of time (usually 25 years but can be shorter or longer). You pay the interest and some of the capital on a monthly basis to the lender.

ADVANTAGES:

1. Some flexibility with repayments.
2. The only way you can be 100% certain the loan will be repaid, providing repayments are maintained.

DISADVANTAGES:

1. Monthly mortgage payments may be higher than interest only mortgages covered by an investment/life assurance product to repay the capital.
2. Only a small amount of capital is paid off in the early years as the monthly mortgage payment consists of a higher proportion of interest to capital repayment.

Your home may be repossessed if you do not keep up repayments on your mortgage.

We offer independent mortgage advice from the whole market, for this service we charge a fee, typically £500, however any commission we receive from the lender (typically 0.250% of the loan amount) will be offset against our fee, thereby ensuring that our advice is truly independent and without commission bias.