|
|
Income |
| |
Most mortgages lenders allow a multiple of
income as the maximum amount of loan.
For example:
3 x single income
2.5 x joint income |
|
|
My Financial Commitments |
| |
A Mortgage lender will ask you about your
financial commitments and take these into account to assess your maximum
loan amount. For example: personal / car loans, maintenance payments. |
|
|
Credit History |
| |
A Mortgage lender will ask
you about your credit history. If you have a bad credit history you may
be offered a mortgage at a higher rate than advertised or could be declined. |
|
The Interest Rate |
| |
The higher the interest rate, generally the
higher your payment will be for a mortgage of the same amount and term,
but lower interest rate. |
|
The Loan Amount |
| |
The higher the loan amount, generally the
higher your monthly payment will be for a mortgage of the same interest
rate and term, but lower
amount. |
|
The Payment Term in years |
| |
The shorter the term, generally the more
you will pay per month for a 'repayment' mortgage with the same payment
interest rate and the same loan amount. However, the term does not affect
the monthly amount your mortgage will cost you if it is an 'interest
only' mortgage with the same loan amount and interest rate. |
|
An 'Interest Only' Mortgage |
| |
Is where you repay the loan amount separately,
for example, by an Investment Vehicle such as an ISA, Endowment, PEP
or Pension. Provided the interest rate is constant, the monthly amount
will remain constant, regardless of the length of the loan. |
|
A 'Repayment' Mortgage |
| |
Is
a mortgage where you pay off part of the capital each month as part of
your regular payment. The balance of the monthly payment is interest.
The amount of capital you pay off per month generally increases towards
the end of your mortgage term. For
example:
For Illustration purposes only.
In general, the shorter the period of
the loan, the higher the monthly payment will be.
|
The Financial Services Authority does
not regulate mortgages, or advice on some types of life assurance,
although it does regulate the financial soundness of insurance
companies.
Hedgelands Financial Services Ltd subscribes to the Mortgage
Code, under registration number 4932266. For details of the Mortgage Code
visit www.mortgagecode.org.uk
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER LOAN SECURED ON IT.
Written quotations available on request. Loans subject to status and only
available to persons aged 18 and over. Loans are secured on your property
and a life policy may be required. |
