Questions to consider...

Are you concerned about the possibility of future interest rate movements?

Might your income or expenditure fluctuate significantly in the near future?

Do you prefer a set budget?

Are you likely to move in the near future?

Would you like the ability to vary the repayment amount or take payment holidays?

Do you have any plans to pay off some, or all of your mortgage in the foreseeable future?

Do you prefer a short or a longer term arrangement?

Do you require Mortgage, property and personal protection?

Would you like the certainty of you mortgage being repaid at the end of your mortgage term?

Mortgage Repayment Methods

What is your attitude to the risk of repaying your mortgage?

Repayment

Each monthly payment to your mortgage lender consists of capital and interest.  Over your mortgage term the loan gradually reduces so that at the end of the term your mortgage will be repaid as long as you keep up your mortgage payments.

Interest only

The monthly payment to the lender purely pays the interest on the capital borrowed.  The loan therefore does not reduce.

A 'repayment vehicle' should be in place in order to pay off the outstanding balance at the end of the mortgage term.  Types of repayment vehicle include ISA's, pensions and Endowments.  But please note that the repayment vehicle chosen may not pay off the mortgage in full at the end of the mortgage term.

 

Here are some questions on this page for you to think about when looking for mortgage advice.