Your Circumstances
Repayment Mortgages
A repayment mortgage is probably the safest type of mortgage available.
An amount of money is loaned to the customer by the lender and a monthly repayment is calculated. With a repayment mortgage, part of the monthly payment covers the interest due each month and part goes towards repaying the capital-so by the end of the agreed term the loan has normally been paid off completely.
Your monthly mortgage payment will not change unless there is a change in interest rates. Each month as your mortgage decreases, your split between capital and interest will change.
The longer the mortgage term, the lower your monthly payments will be but the more interest you will pay in total. Over the term of the mortgage, as the capital is gradually repaid, less interest is accrued and therefore a gradually increasing proportion of the monthly repayment is available to repay capital. It takes approximately 7 years before you will notice that within your monthly payment the interest part and capital part become more equal.
There is no life cover built into this type of mortgage so you will need to make separate arrangements. The insurance policy is written on the life/lives of the borrowers and the initial sum assured is the same amount as borrowed.
Below is a table to give you an idea of what your borrowing will cost you, the amounts are interest payments per £1,000 borrowed. Just multiply your loan amount by the selected loan rate to calculate your monthly loan payments.
years |
4.5% |
4.75% |
5.00% |
5.25% |
5.5% |
5.75% |
10 |
£10.54 |
£10.64 |
£10.80 |
£10.93 |
£11.06 |
£11.19 |
12 |
£9.14 |
£9.25 |
£9.41 |
£9.54 |
£9.67 |
£9.81 |
15 |
£7.76 |
£7.67 |
£8.03 |
£8.17 |
£8.31 |
£8.45 |
20 |
£6.41 |
£6.52 |
£6.69 |
£6.83 |
£6.98 |
£7.12 |
25 |
£5.62 |
£5.74 |
£5.92 |
£6.07 |
£6.22 |
£6.37 |
30 |
£5.12 |
£5.24 |
£5.43 |
£5.58 |
£5.74 |
£5.90 |
Eg: £80,000 over 15yrs at 5.25% would be £80,000 x 8.17 = £653.60 monthly payment.
The information contained within this table should not be used to base your decisions. Please ask us for a personalised illustration.
Its your choice
“We do not usually charge a fee for mortgage advice. However you do have the option to pay a fee of eg: 1.5% of the loan value and then you would receive any commission payable by the lender."
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
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