George Gibson IFA

 

What is a mortgage?

A mortgage is a loan you take out to buy property. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies. If you change lenders but don't move home it's referred to as a 're mortgage'

 

Choosing a mortgage - where to start
You can get a mortgage direct from the lender (banks, building societies and specialist mortgage lenders), or you can use a mortgage broker. You can buy based on 'information' only or get advice and recommendation on a mortgage that suits your particular needs.

 

Repayment methods
The two main ways to repay your mortgage are 'repayment' and 'interest only'. With a repayment mortgage you make monthly repayments for an agreed period (the 'term') until you've paid back the loan and the interest.

With an interest only mortgage you make monthly repayments for an agreed period but these will only cover the interest on your loan (endowment mortgages work in this way). You'll normally also have to pay into another savings or investment plan that'll hopefully pay off the loan at the end of the term.

 

Flexible features
Some mortgages offer you options to vary your monthly payments, or to combine your mortgage account with savings and other income - these are called flexible, current account and 'offset' mortgages.

 

Interest rates
You'll also find a range of interest rates to choose from. For example, 'variable' and 'tracker' rates change in line with Bank of England rates, 'fixed' rates are fixed for a set number of years, and 'capped' rates have a variable interest rate with a ceiling so your payments won't go above a set amount.

 

Insurance
A lender may require you to take out life insurance to pay off your mortgage should you die. You can also get insurance to protect your income or just your mortgage payments if you become ill or disabled, or lose your job.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstances,but we estimate that it will be between £0 and £199

 

George Gibson is a Director and Financial & Mortgage Adviser of Kingdom Investments Ltd Registered in Scotland No. SC428631 Registered Address: 5 Castle Court, Carnegie Campus, Dunfermline KY11 8PB
Kingdom Investments Ltd is a trading style of Kingdom Investment & Mortgage Services Ltd which is authorised and regulated by the Financial Conduct Authority.
FSA Number: 587620
The Financial Services Authority does not regulate will writing, taxation and trust advice.
Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstances but we estimate that it will be between £0 and £199.
The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK


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