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 slightly higher than interest only mortgages covered by an investment/life assurance 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.

For Mortgage advice, you can choose how we are paid. We can accept a £250 fee and commission from the lender, or you pay a fee of £50 per hour. A mortgage usually takes 10 hours to arrange so our fee would be £500, or we can be paid by a combination of both. For sub-prime cases, there will be an upfront fee of £500.