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What is the difference between interest only and repayment mortgages?
The basic difference is the repayment mortgage will pay off your mortgage at the end of the mortgage term; the interest only mortgage payments pay only the interest on the amount outstanding. The monthly payments contain a capital element and an interest element, in the early years the interest element is stronger than the capital, but the further into the term you go the more capital you will repay. Interest only is the cheaper option of the two; usually there is some form of investment running alongside this type of mortgage to help repay the loan at the end of the term.
Can I repay my mortgage without penalties?
This really depends on the type of mortgage you have taken at the outset. Some mortgages will allow you to pay your mortgage before the end of the term; others will charge you for the privilege.
Can I change my mortgage from repayment to interest-only?
Normally the answer to this is yes. Some lenders will charge you an administration fee for this service.
Can I pay extra on top of my mortgage?
This again depends on the type of mortgage you have taken out, with certain mortgages you can, with others you can be restricted how much you can repay, with some others you can but you may be liable for penalties. Check first.
I am self employed is it easy for me to get a mortgage?
Normally the difficulty can be with what the lender requires, such as 3 years business accounts as they may not be readily available, the unpredictability of your earnings can be difficult for lenders to understand and as such the process can be lengthy. If you do have accounts and your accountant will give a reference, and you do have a good credit history then it should be relatively straightforward.
Who is doing the best mortgage at the moment?
This changes on a regular basis, the cheapest mortgage may not be the best for your situation, there are many mortgage schemes around, so this needs to be researched carefully, seek the help of an Independent Financial Adviser, who will do this.
Can I get a better deal on my mortgage?
If you check with your mortgage documents or lender and if you are free of any penalties, then it is worthwhile checking to find out if there is a better deal for you. In this particularly competitive market you should be able to find a deal that suits.
Can I add my wife/husband to the mortgage?
Yes is the normal answer, however there can be things to consider, such as additional stamp duty charges and so on. Check with a good Solicitor.
Can I remove my wife/husband from the mortgage?
Yes, however the mortgage is nearly always based on affordability to make the repayments, they will calculate whether it is logical to do so before making their decision.
What is an interest-only mortgage?
This is a mortgage where the payments you make are only paying off the interest charged on the amount of loan outstanding.
How long can I have one for?
The term can normally be decided by you. As once the mortgage is repaid. That’s it.
How do I know if it is suitable for me?
I would recommend getting Independent Advice for guidance.
If I am buying a property to rent out is an interest-only mortgage advisable?
This depends on you. With this type of mortgage you would make more profit, the Capital would be however be static. Independent Advice should help.
What methods of payments can I use?
You could use, interest only, repayment, pension-linked, investment-linked, unit-linked and flexible repayments.
Can I monitor my interest-only mortgage?
Sure, there are quite a few lenders that have an online facility, or you can get monthly statements, some lenders may charge for this.
What do I need to get a mortgage?
Normally a good credit history, provable identification, is in employment, proof of residency, good work history, bank account, and a solicitor. If you have any problems in these areas, seek Independent Mortgage Advice.
What is the best way to take maximum advantage of my mortgage?
Having the right mortgage that suits your situation, is the answer.
Can I pay my mortgage off early?
You can, but check for possible redemption penalties.
If I decided after starting an interest-only, that I would prefer a different mortgage can I change it to that one easily?
Check with your lender. Normally yes you can, there may be an admin charge.
Can I have an Interest-only mortgage on a Right to Buy?
In most cases, yes you can.
Can I have an Interest-only mortgage on a Buy to Let?
In most cases, yes you can.
Can I have an Interest-only mortgage on a Self-Cert?
In most cases, yes you can.
Can I have an Interest-only mortgage on a Non-Status Loan?
In most cases, yes you can.
Can I have an Interest-only mortgage on an Adverse Credit Loan?
In most cases, yes you can.
Can I have an Interest-only mortgage on a Shared Ownership Loan?
In most cases, yes you can.
Can I have an Interest-only mortgage on a Remortgage?
In most cases, yes you can.
Can I have an Interest-only mortgage as a First Time Buyer?
In most cases, yes you can. |
