Paying for your home
Once you’ve identified your dream home the bottom line is how to pay for it. We can guide you through the process and help you get the solution that works for you. There are two main ways to repay your mortgage and there are some stark differences between them. We can help you identify which is appropriate for you.
Capital and interest
- Also known as repayment mortgage.
- Monthly payment consists of part capital and part interest.
- In early years payment consists mainly of interest with more capital being repaid as term progresses.
- Certainty of mortgage being repaid (provided all repayments are made).
- Cautious method.
- Only interest paid each month.
- No reduction in capital unless made voluntarily.
- Must have a suitable savings vehicle or repayment strategy (eg endowment policy, ISA, pension or sale of property).
- Regular reviews required.
- Adventurous method.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate some forms of Buy to Let Mortgages.
To understand the features and risks of a lifetime mortgage you should ask for a personalised illustration.