Your monthly payments represent only the interest due to the lender, and do not include repayment of capital.
Lenders require evidence that a customer will have in place a clear, credible repayment strategy and that the repayment strategy has the potential to repay the capital borrowed.
Repayment strategies may include deposits or investment product(s), pension(s), periodic repayment of capital from irregular sources of income (i.e. bonuses), the sale of another property or other land or other acceptable methods which meet lending criteria.
Where the repayment of capital is an investment, the investment runs alongside the mortgage but is separate from it, the cost should be taken into account when calculating the overall costs of the mortgage arrangement.
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.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
As Independent Mortgage advisers we always offer the option to pay for our services either via fees or commission. Where the commission option is chosen you will not be asked to pay any fee to us unless the best lender is one of the few who do not offer introducer fees to brokers. In such circumstances where the lack of broker commission results in your having to pay a fee - or where you choose to do so to help reduce your overall mortgage costs - we typically charge 0.35% of the loan amount. On a loan of £100,000 this would mean that you may be charged a fee of £350. A minimum fee of £250 will apply. Fees become due upon completion but will be chargeable, and thus invoicable, upon receipt of an offer. You will receive written confirmation of any such chargeable fee before proceeding.
TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.
TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
How does it work?
Your monthly payments represent only the interest due to the lender, and do not include repayment of capital.
Lenders require evidence that a customer will have in place a clear, credible repayment strategy and that the repayment strategy has the potential to repay the capital borrowed.
Repayment strategies may include deposits or investment product(s), pension(s), periodic repayment of capital from irregular sources of income (i.e. bonuses), the sale of another property or other land or other acceptable methods which meet lending criteria.
Where the repayment of capital is an investment, the investment runs alongside the mortgage but is separate from it, the cost should be taken into account when calculating the overall costs of the mortgage arrangement.
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.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
As Independent Mortgage advisers we always offer the option to pay for our services either via fees or commission. Where the commission option is chosen you will not be asked to pay any fee to us unless the best lender is one of the few who do not offer introducer fees to brokers. In such circumstances where the lack of broker commission results in your having to pay a fee - or where you choose to do so to help reduce your overall mortgage costs - we typically charge 0.35% of the loan amount. On a loan of £100,000 this would mean that you may be charged a fee of £350. A minimum fee of £250 will apply. Fees become due upon completion but will be chargeable, and thus invoicable, upon receipt of an offer. You will receive written confirmation of any such chargeable fee before proceeding.
TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.
TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
When someone talks about savings and saving money, it could be referring to a piggy bank or a high interest deposit account. Savings are effectively cash or cash instruments
Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks.
When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed
The main purpose of Life Insurance is to provide money for those people who may depend on you financially, in the event that something should happen to you.
Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die. Taxation can be very complicated and the rules, reliefs and allowances
Professional Financial Planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions
