Capital Repayment Mortgage

Capital Repayment Mortgage

Capital Repayment Mortgage - Capital repayment mortgage is mortgage whose monthly repayments consist of repaying the capital amount borrowed and interest on the loan. A capital repayment mortgage guarantees borrowers that at the end of the mortgage term; their home loan will be paid off. A capital repayment mortgage is generally a safer alternative to an interest only mortgage.You should be aware that for interest only mortgages your debt will not reduce over the term of the mortgage and you will be responsible for arranging a vehicle to repay the capital borrowed. This is because an interest only mortgage requires you to have some form of investment or savings plan alongside your mortgage to ensure you can pay off the lump sum at the end of the mortgage term. However, with volatile stock markets, borrowers face the risk of being unable to pay off the lump sum at the end of their mortgage

Taking a capital repayment mortgage offers borrowers numerous advantages. For instance, initial mortgage payments will consist mainly of interest on the entire mortgage. Then, the more payments you make, the less interest borrowers will have to pay as the outstanding balance gets smaller and smaller. As a result, borrowers are less likely to suffer from negative equity, because equity in the property generally increases over time.

Capital repayment mortgage deals with varying rate structures are available from a range of lenders. In addition each lender offering capital repayment mortgage packages has distinct lending criteria. Navigating through different capital repayment rate structures and knowing which lenders criteria you meet can be time consuming and complex. The services of a professional mortgage broker can save you the time and hassle and this is where we can assist.

Our advisers understand the importance of finding the capital repayment mortgage package that best matches your needs and requirements. We have links with leading mortgage providers and have access to some deals that are not available on the high street. We will use our comprehensive panel base to source the best deal for you with no hidden cost attached. Our capital repayment mortgage advisory team can also guarantee to fill in any relevant paperwork associated with your enquiry, supplying constant guidance throughout your application and beyond.

If you need any assistance why not speak to one of our Mortgage Advisers by calling 020 77 100 400 or Enquiry Online.

Call us today to speak one of our adviser’s specialising in capital repayment mortgage deals.

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