Repayment
Mortgages - Mortgage Information
What
is a Repayment Mortgage?
Their
are two types of mortgage: repayment and interest
only.
With
a repayment mortgages the entire mortgage is paid back over an agreed
period of time (this is referred to as the mortgage's term and is
usually set at 25 years). When the mortgage's term has come to an
end, providing all the repayments have been met, the property will
be in the hands of the homeowner.
With
an interest only mortgage, repayments are made solely on the mortgage's
interest. This means that once the mortgage reaches the end of its
life, the homeowner must still repay the lender the entire value
of the initial loan.
Deciding
which mortgage is best for you depends on a few factors, which is
why it's important for you to do your financial homework first.
Repayment mortgages are regarded as the safest option, hence their
appeal to the more cautious investor. They are certainly much easier
to understand and you should have no trouble working out your monthly
incomings and outgoings.
List
of Major Mortgage Lenders
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
