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Loan Amount |
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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. |
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Payment Term in years |
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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. |
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The Type of Mortgage |
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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. |
