|
|
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. |
|
|
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. |
|
|
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. |
|
|
The Type of Mortgage |
| |
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. |
