Mortgage Services

Capital and Interest Mortgages

An arrangement where part of the monthly repayment is used to pay the interest and the remainder is used to reduce the original amount of the loan. In the early years of the mortgage, most of the monthly repayment goes towards paying the interest; in later years, the proportion of the payment that is interest reduces (as more of the capital is repaid) and more of the repayment is available to reduce the loan amount.

Interest-only Mortgages

Interest only mortgages are a type of mortgage where the regular payments only cover the interest that is due. The full capital amount remains outstanding during the mortgage term and is repaid in one lump sum at the end of the term.

Lenders require evidence that a customer will have in place a clear credible repayment strategy and that the repayment strategy has the potential to repay the capital borrowed.

Repayment strategies may include investment product(s), pension(s), periodic repayment of capital from irregular sources of income (i.e. bonuses), the sale of another property or other land or other acceptable methods which meet lending criteria. It will not normally be appropriate to use deposit accounts as a repayment strategy as the rate of interest charged on the mortgage is normally greater than the interest earned on the deposit.

This means that the mortgage payments made each month to the lender will be lower than those of a repayment mortgage for a similar loan and term. However, borrowers must remember that the cost of their repayment vehicle/strategy needs to be taken into account when calculating the overall costs of the mortgage arrangement and especially when comparing those costs to the cost of borrowing on a capital & interest basis.

The prospect of buying your first home can be both daunting and confusing.  We aim to guide you through the process from start to finish, so that you understand exactly what’s involved.  We will explain the different types of mortgages and interest rate types, as well as running through the costs involved at the outset, so you are fully informed, enabling you to make your first home purchase with confidence.

Buy-to-let (BTL) mortgages are specifically for individuals who wish to buy residential property which they intend renting to tenants. Although a BTL mortgage is similar in a number of respects to a standard residential mortgage, there are some significant differences which we will happily guide you through.

THINK CAREFULLY BEFORE SECURING YOUR DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Whether you are looking at consolidating your debts, raising money for home improvements, looking for a better monthly payment than you currently have, or want to restructure the terms of your current loan, we can help.

Remortgaging can help your financial health in many ways. In simple terms, remortgaging involves moving your current mortgage to a new arrangement, arranged either with your existing lender or with a new lender.

This means your monthly repayments have a fixed interest rate for a period of time, usually for 2 or 5 years.  The interest on the loan will not rise or fall for this period of time, so although payments are fixed, if interest rates fall, the borrower could potentially end up paying more than he or she would an another type of mortgage.  It does however give the borrower stability in payments and peace of mind for a set period.