Mortgages are one of the largest single transactions in most people’s lives.
Buying a property can be a stressful and time consuming experience. Finding and selecting the most suitable mortgage is critical.
It is vital to get clear independent advice so you can make an informed choice about which option is right for you.
Call The Profit Key for advice on how we can help take the stress out of securing the best mortgage deal for you.
Even the once simple home mortgage now has so many flavours and styles and variations that it is difficult for people to make a decision.
Banks, Building Societies and other lenders are all competing for your mortgage business so it is well worth while getting independent advice on which product best meets our needs. Being independent financial advisors means we can look at the whole of the market and advise which product best meets your needs from all the available lenders. The main methods of repaying a mortgage include Capital and Repayment or Interest only. There is sometimes also the possibility of using a combination of the two.
Under a repayment mortgage your monthly payment consists of both interest and capital hence, over time, the amount of money you owe will decrease. In the early years, your repayments will be mainly interest and therefore the capital owed will reduce slowly in the initial years.
Interest Only Method
As the name suggests the interest only method pays only the interest owed on the mortgage and at the end of the term the capital is still outstanding. Therefore you will usually need to take out some kind of investment policy to save up enough money to repay the mortgage at the end of the term.
The traditional route was to take out a mortgage endowment policy which included a set amount of life cover. Recently though, customers are using Individual Savings Accounts (ISA’s) and pensions to build up a sufficient sum whilst taking advantage of the tax breaks offered by these products.
Mortgage products can include Standard Variable Rate (SVR) where you are normally able to switch lenders a Fixed Rate where you pay interest at a set rate irrespective of any interest rate fluctuations. There are also mortgage products called Trackers which might track a particular index such as the Bank of England base rate. Discount mortgages is another variation on the standard variable rate product but it provides a discount on the SVR for a set period.
All this simply indicates that it is well worth speaking to an independent financial adviser to get the best advice for your circumstances.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
To understand the features and risks of equity release schemes, please ask for a personalised illustration.
For advising on and arranging a mortgage deal, we charge a fee of £295 or £495 for a Lifetime/Home Reversion (Equity Release) Mortgage which falls upon submission of the application to the lender. This fee will be paid directly by you at the above time, unless it is your wish to add our fee to the mortgage loan.
We will receive and retain a commission from the lender when your mortgage completes. This amount will be confirmed by the lender in their disclosure document. Should you wish, you can request to view the commission rates from each of the lenders we have considered at the time that we make our recommendation to you.
We will discuss your payment options with you and confirm the actual amounts payable before we begin to provide our services. The Financial Conduct Authority does not regulate Wills, Estate Planning and some forms of Mortgages.
The Profit Key has a strategic partnership with Foxbridge Independent Financial Solutions Ltd which is Authorised and Regulated by the Financial Conduct Authority. Financial Services Register Number 456481. Registered in England & Wales, Company Number 04522310. Registered Office address: Prince William House, 10 Lower Church Street, Ashby De La Zouch, Leicestershire, LE65 1AB. Trading address: Chapel House, 65 The Hill, Kirkby In Ashfield, Nottingham, NG17 8JS. Telephone: 01623 750839
The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK.
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