|Mortgages For Development, Commercial & Residential
There is a wide range of mortgage products available in the marketplace
We can check to see if you are currently paying too much for your mortgage or for your other business or personal borrowings!
We can advise on the best rates and the best type of mortgage to suit your individual needs, the most common types are:
This is the most common mortgage taken out by borrowers. The payments on the loan comprise of capital and interest where the interest is usually calculated on a monthly basis.
Current Account/Cheque Book Mortgage
The advantage of this type of loan is that any credit in your current account will be offset against the interest being charged on your mortgage. This Mortgage combines a variable rate repayment with a current account
Interest Only Mortgage
In certain circumstances interest only mortgages could be arranged. No regular capital repayments would be made and final capital repayments would be arranged with the lender.
This mortgage is an interest only loan, which requires an endowment policy to clear the loan after the term has completed. Endowment policies have not previously performed well enough over the past number of years. These policies have sometimes left home owners with a shortfall.
This mortgage is an interest only loan, which requires a pension policy to clear the loan after the term has completed. The advantage of a pension mortgage is that both the capital and interest may obtain tax relief. While the loan is not normally repaid until the end, additional capital repayments can be made at any time (see note re fixed rate penalties below).
Fixed Rate Mortgage
Like the name suggests a fixed rate mortgage is a loan where the rate is fixed for a certain term. This may vary from 1 to 10 years.
The downside to fixed rate mortgages is the penalty which may apply when the borrower wants to revert to a variable rate or change lender. This penalty, depending on the lender, may cost thousands.
The upside is that the borrower knows in advance how much their mortgage will cost regardless of any rate changes during the fixed term.
Variable Rate Mortgage
This loan comprises of capital and interest payments. The rate applied to the loan will fluctuate from time to time as the ECB rate (European Central Bank) increases or decreases.
Split Rate Mortgage
This gives the borrower the option of splitting their loan into two or more parts. These may vary either by rate (fixed, variable, tracker), or repayment type (annuity or interest only).
Special development loans on an interest only basis to fund the site purchase and construction costs until the property is sold, availability of these are currently limited due to the bank crisis.
|Financial Regulator Warnings
The entire amount that you have borrowed will still be outstanding at the end of the interest only period.
You may have to pay charges if you pay off a fixed-rate loan early.
This new loan may take longer to pay off than your previous loan. This means you may pay more than if you paid over a shorter term.
The cost of your monthly repayments may increase - If you do not keep up repayments you may lose your home.
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