Property Mortgage

What does it all mean, where can I get the right advise?

What is a property mortgage?

A property mortgage is a loan 'secured' against the value of the property. If you do not keep up mortgage payments, you may loose your property.

A property mortgage or home property loan is generally acquired from a lender to buy residential property. Remortgaging is when existing homeowners change mortgage lenders without moving property.

MORTGAGES in the UK - Fixed or variable rate?

Property Mortgage types

In UK there are two main types of property mortgage. These are interest only mortgages and repayment mortgages.

Capital Repayment Mortgage

A Capital Repayment Mortgage is a very straightforward way of repaying a home loan or property mortgage. One single payment is made every month to the lender, which covers some of the capital borrowed, and the interest. At the end of the term, provided all monthly payments have been met, the property loan/mortgage is fully repaid.

Interest only Mortgages

An Interest only Mortgage is where monthly repayments pay back interest on the property loan. When the property mortgage term is at an end, the capital initially borrowed is still owed to the lender. In order to repay the balance owed at the end of the mortgage term, borrowers generally make regular contributions into an investment policy - which runs alongside their mortgage repayments. This investment can be arranged by the property mortgage provider, often in the form of an endowment mortgage, a pension mortgage or an ISA mortgage.