TYLER MORTGAGE MANAGEMENT - INDIVIDUAL EXPERT ADVICE
Generally the choice facing us all is whether to choose a Repayment mortgage or an Interest Only mortgage (or a combination of both).
For an owner-occupied property we would generally always try to ensure a repayment mortgage is strongly considered, unless affordability is a real issue. A repayment mortgage is like most other loans you may have experienced: you pay an element of the capital each month and interest on the outstanding balance each month. As with any other loan, if you maintain your mortgage repayments for the duration of the original term the debt will be repaid and the property will be yours (rather than yours and your chosen lender's).
For those under budgetary pressure at the start of their loan or those who are buying investment property, generally borrowers strongly favour an interest-only loan. Interest Only loans allow you to simply pay just the interest every month, this is similar to having a huge overdraft secured on your home.
As you are not contracted to repay any of the capital until the end of the mortgage term you can make (or not make) your own arrangements to repay the debt over the ensuing term using investments, bonuses, inheritance, or surplus earnings if inflation allows – you may also need to set up a separate investment vehicle to generate a lump sum to enable you to repay the capital.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
To discuss your current or future mortgage requirements please call 020 7930 7242.
A typical fee for arranging your mortgage is 1.5% of the loan amount.