Frequently Asked Questions

Repayment versus Interest only.

There are many schemes offered by mortgage lenders from which you as a prospective borrower can choose. Which scheme you decide upon will be dependent on your individual circumstances and objectives.

This single factor is probably the most important decision you have to make when arranging your mortgage. At Riverside Mortgages Ltd. we will make sure that you understand the options available to you and give you enough information so you can make an informed decision.

There are basically only 2 repayment methods available although it is possible to have a combination of both methods:

Repayment.

A repayment mortgage should more properly be referred to as a Capital and Interest method: - With a capital repayment mortgage, the capital and interest elements of the loan are paid off with each monthly installment, with the balance reducing over the length of the loan.

Therefore by the end of the mortgage term, assuming all mortgage payments are made, you have paid off the balance in full and you therefore own your property outright.

Interest only.

With an interest only mortgage the balance of your mortgage stays the same throughout the mortgage term.

Interest and usually a premium in a suitable investment vehicle are paid monthly. At the end of the term, the proceeds from the investment vehicle are intended to repay the mortgage. This amount will depend on the performance of the investment vehicle.

If you do choose an interest only mortgage you are responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the term.

You need advice

Because this is such an important issue, it is essential that you seek impartial advice. Please call us today to discuss your requirements.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

We offer all our clients a free initial consultation after which a non refundable commitment fee of £95 will be charged with a further £250 payable on completion based on individual client circumstances. We also offer a fee only option whereby we charge a 2% broker fee on the amount borrowed and any commission derived from the lender is rebated back to the client.

The overall cost for comparison is 7.9% APR

Riverside Mortgages Ltd is registered in England and Wales. Registration Number: 5978086