Your monthly payments represent only the interest due to the lender, and do not include repayment of capital. Your total loan must be repaid at the end of the mortgage term. You therefore need to arrange additional investments which will generate sufficient capital to repay the loan.
ADVANTAGES:
You can choose from a variety of investments, some of which have tax advantages.
Should you move or arrange a remortgage, your investment can usually be reallocated to the new mortgage.
Normally cheaper than repayment mortgages.
DISADVANTAGES:
Unlike a repayment mortgage, the amount of debt outstanding does not reduce over time.
There is no guarantee that the investments chosen will grow sufficiently to repay your loan.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.
There may be a fee for mortgage advice. The precise amount will depend on your circumstances but we estimate that it will be £249.
Alan Bell Mortgages is a Credit Broker and not a lender and any fees are charged solely for Credit Broking Services, not lending services.
We do not normally charge for our initial assessment of your needs. At the point where we undertake to make an application for funding on your behalf a fee will become payable towards our costs incurred for the application. This will be advised in advance and is non-refundable. The remainder of our remuneration generally is met by commission paid upon completion of the deal. If this is not the case, or there are additional costs to be met by you, this will be agreed between us in advance.
