Ways to repay your mortgage – let ACC Associates mortgage brokers and advisors guide you

With so many mortgage choices available plus so much industry jargon, it can be difficult to decide which mortgage is right for you! ACC Associates is committed to providing you with the right product and service, tailored to suit your individual mortgage needs. To help you choose the right way for you to repay your mortgage, take a look at the details of a Capital and Interest (Repayment) and Interest Only below, or feel free to call us and speak to a broker advisor on (01249) 599019 to discuss your individual mortgage needs.

Capital and Interest (Repayment) Mortgage

Your monthly mortgage repayments comprise of capital and interest payments combined so that by the end of the mortgage term, as long as you have made all the monthly payments, you have paid off the original mortgage amount borrowed plus any interest that has been accrued. This type of mortgage is therefore suitable for you if you want the peace of mind of knowing your mortgage will be paid in full at the end of the mortgage term. Below is a diagram to illustrate how your mortgage balance will gradually decrease over the mortgage term.

Interest only Mortgage

An interest only mortgage is structured so that only the interest is paid back to the lender each month. The original mortgage amount remains the same for the term of the loan. A suitable investment plan will be required in order to repay the loan at the end of the mortgage term, for example an endowment, an ISA, pension plan or a second home.

As the amount you borrowed will remain outstanding for the duration of an interest only mortgage, it is essential that you consider how you will repay this sum at the end of the mortgage term. You will need to ensure you review your proposed repayment vehicle on a regular basis, for example annually, and we suggest taking advice from a suitable qualified financial professional to ensure your repayment vehicle is growing sufficiently to provide you with the required sum of money to repay your mortgage in full at the end of the term.

Below is a diagram to illustrate how your mortgage balance will remain the same over the mortgage term with this mortgage repayment type.

Mortgage Advice from ACC Associates Brokers

ACC Associates understand that making decisions about the different parts of your mortgage can be confusing and time consuming. As comprehensive mortgage brokers who give advice, we can guide you through the range of options available to you, to ensure you make what maybe your biggest financial commitment, with your eyes wide open – plus someone to contact at anytime should you have any queries now or in the future. We can help you avoid common pitfalls and so ensure you are not wasting your valuable time.

Contact ACC Associates Brokers and Advisors for Mortgage Advice

Your ACC Associates mortgage broker and advisor will take care of reviewing what your options are and can find the right mortgage deal to fit your needs – leaving you to relax. Call to speak to an adviser on (01249) 599019.