Ways of Paying off a mortgage

Many people are confused about the seemingly endless types of mortgages. Well let me attempt to simplify matters.

There is only two ways you can repay a mortgage. That being either a capital & interest repayment mortgage or an interest only mortgage.

Repayment Mortgages

A C&I repayment mortgage is the most straight forward to understand as it is just like an everday loan that is repaid after a set term of months or years. The big difference of course is that a mortgage is paid for over 25 years. Hence the entemology of the word mortgage is Mort (french for death) and gage (to pledge or engage). A death pledge or your nearly dead by the time you pay the thing off!!.

Please look at some Repayment Mortgage Options by visiting our Mortgage sourcing pages pages or contact us for advice on repayment mortgages.

Interest Only Mortgages

Interest only mortgages are generally where the confusion arises. Interest only is just what it means (ie) you borrow £100,000 over 25 years and at the end of 25 years you still owe £100,000 as all you have done is pay the interest.

So how on earth do you ever pay off an interest only mortgage. Well there are numerous ways and most involve a savings plan. I will list a few for you so you get the idea but is by no means an exhaustive list.

Interest only mortgages have had a lot of bad press over the years mainly due to the popularity of endowment policies sold in the 1980's. Interest only mortgages do have their uses, however they need to be relevant to your particular needs. The advice is very specific and the full implications of taking out an interest only mortgage need to be fully explained.

Please check out some Interest Only Mortgage options by visiting our Mortgage sourcing pages or contact us for advice on interest only mortgages.

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To understand the working of mortgage interest please visit our mortgage interest page.

DISCLAIMER: Please be advised that we are authorised to advice on interest only mortgages and do not give any advice in respect to repayment vehicles relating to any stock market investment.

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0800 0432864

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0151 329 2901

Email

info@mortgage-xperts.co.uk

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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Mortgage Xperts is a trading name of Echelon Mortgages Limited.

Echelon Mortgages Limited is authorised and regulated by the Financial Services Authority in England and
entered on the FSA Register under reference number 461478.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is
therefore primarily targeted at consumers based in the UK.

Address: Mortgage Xperts
33 Orrell Lane
Orrell Park
Liverpool
L9 8BU

Tel: 0151 329 2900
Fax: 0151 329 2901
info@mortgage-xperts.co.uk