Part Interest Only/Part
Repayment Mortgages
With a part interest only/part
repayment mortgage, a proportion of the loan is treated as
an interest only mortgage and the other proportion as a repayment
mortgage. Therefore, you will use both repayment and interest-only
methods to repay the loan.
If you have an existing investment
policy in place before seeking a mortgage you may want to
consider this option.
This type of mortgage is most common
with people who already have an investment product (an endowment,
ISA or pension plan) arranged prior to taking out the mortgage
and want to use this to help reduce the additional cost of
taking out the mortgage.
It is possible to use an investment
policy to repay part of the loan, and then pay the remaining
part with a repayment mortgage.
or example, if you want to take
out a £350,000 mortgage and already have an endowment
that could pay out £100,000 in a number of years time,
you could consider an interest-only element to cover the first
£100,000 and a repayment element for the remaining £250,000.
Your home may be repossessed
if you do not keep up repayments on your mortgage.
Details
of our fees can be found here.
The FSA does not regulate Commercial
Mortgages or some forms of Buy to Let Mortgages.
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