Whether you are a first-time buyer, moving home or simply wishing to take advantage of a more competitive rate, it is important that you have the right mortgage in place. Getting the right mortgage deal can mean making some difficult choices. It makes sense then to seek the best professional advice. Prosperity can help to interpret the variety of repayment methods, interest rate deals and other factors that influence your decision-making. Our mortgage advisers offer professional advice without being tied to any single mortgage lender.

Choosing the best way to repay your mortgage:

When you have decided which mortgage is suitable for you, the next step is to choose how you want to repay it. There are two main options available: “Repayment” (also known as “Capital and Interest”) and “Interest only”.

Repayment Mortgages

This is the safest way to repay your mortgage. It means that you repay both the capital and the interest over the term of your mortgage. In the early years, the bulk of your monthly payments go towards paying off the interest, but as the mortgage matures a greater percentage is used to repay the capital.

Interest-only Mortgages

With Interest-only Mortgages, you only repay the interest on the amount you have borrowed during the course of the mortgage. This means that at the end of the mortgage term, the capital amount borrowed remains outstanding and you must therefore have the means to repay it. This is usually achieved by investing in a separate policy that yields the necessary amount on maturity, for example, an Endowment ISA or a Pension Scheme, alternatively you may prefer to sell the property.

 

There are many other options available and other considerations that require your attention. Our qualified advisers have access to the very latest mortgage information and they will always keep you informed and in touch.

Our mortgage service includes:

  • First-time buyers
  • Next-time buyers
  • Remortgages
  • Buy-to-let
  • Equity release

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

Please contact us if you would like to discuss mortgages.