Mortgages made easy
Mortgages are the largest single transaction in most people’s lives and require time and independent advice looking into what is currently available and whether it is the best for you, given your circumstances and future aspirations.
Buying a property can be a stressful and time consuming experience, although nowadays the financing of a mortgage is best arranged before you find a property, rather than simply accepting an estate agent or a single lender’s offer.
Hundreds of banks, building societies, and smaller niche lenders compete for your business, all offering a variety of interest rate deals, associated fees and other enhancements to attract borrowers. At any one time, there can be over 10,000 different mortgage schemes.
There remains two main methods of repaying a mortgage loan, and it is possible to set up the loan on a ‘part and part’ basis. A description of these methods is provided below.
Repayment (capital and interest) mortgages:
Under a repayment mortgage your monthly repayments consist of both interest and capital hence, over time, the amount of money you actually owe will decrease. In the early years your repayments will be mainly interest and therefore the capital outstanding will reduce slowly in the early years.
Interest only mortgages
As their name suggests, with an interest only mortgage you only repay the interest on the loan. At the end of the term the capital is still outstanding. Therefore you will usually need to take out some kind of investment policy / savings vehicle to save up enough to repay the loan at the end of the term.
Traditionally the preferred product for repaying the capital of an interest only mortgage was a mortgage endowment policy (which included a set amount of life cover) – although more recently customers are using ISAs and pensions to build up a sufficient sum and taking advantage of the tax breaks offered by these products.
Subject to status and criteria, an interest only mortgage may be acceptable using existing property or other investments.
Types of Mortgage
Berkeley La Roche will advise and make a recommendation after we have assessed your needs. Having been involved in the mortgage market for over 20 years, we are well placed to advise on all areas of the residential mortgage market:
- Fixed, Tracker or Discount
- Remortgage Schemes
- Mortgage Schemes for Directors / self-employed
- Capital-Raising / Consolidation
- Interest-Only mortgages
- Offset, Current Account and Draw-Down Schemes
- Parent-Assisted Schemes
Berkeley La Roche Management Limited can provide assistance and advice in the following areas:
- *SIPP & Trustee Lending
- Buy-to-Let (Single and multiple basis)
- Buy-to-Let re-finance
* Mortgages for Personal & Corporate Pension schemes to buy property/factory’s/freehold development within a pension fund
Get in touch
We would love to hear from you and answer any questions you have without any obligation or commitment to proceed.
Tel: +44 (0)1622 843694
Fax: +44 (0)1622 844365