For the vast majority of people, your home is the biggest investment you will make throughout your entire life. You might end up paying your mortgage for the next thirty or forty years, so it is absolutely vital that you make sure you are getting the best deal possible.
However, this is far from simple without the right advice. Mortgages are becoming increasingly complex and finding the best one can be a minefield.
In the past, it was often just a case of accepting a lender’s offer. In the modern world, there are countless banks, building societies, and other smaller lenders which are all trying to lure your business in with different deals, fees, and other features which can be very difficult to comprehend.
Luckily, we spend all day doing this. It is our job to consider everything that is out there and work out where all of the best deals are. Not only will this make your money go further, but it puts you in a secure position making sure you are not in danger of losing your home as a result of an inappropriate deal.
Everyone’s situation is different, and there are no black and white one-fits-all rules as to what lenders are the best. However, at AB Vision we will look at your unique and individual situation, and make sure that your life-changing investment gets off to the best possible start.
Repayment vs Interest-Only Method – What’s the Difference?
Although mortgages can be intimidating, there are essentially just two methods of repaying a mortgage. These are repayment (capital and interest) and interest-only. Occasionally, we can combine these two methods. Although this might seem even more complicated, it is for us to work out!
With the repayment method, the sum you pay every month will be made up of both interest and capital. This is the most common set-up in the UK and means you will be paying off the total you borrowed as well as some extra in interest.
One advantage of this method is that when your term is done, you will have paid off the total borrowed in its entirety, assuming you deliver every payment on schedule. At this point, the house is entirely yours and yours alone.
An alternative is to use the interest-only method, which means you will only pay the interest on the amount borrowed. At the end of your term, the sum used to buy the home will still have to be paid.
Although this might sound scary, you can cover this cost through an investment policy which can be used to save up enough to pay off the sum at the end of the term. The kinds of policies involved change from time to time, but we will make sure you are fully prepared.
What’s the Next Step?
The next step in your journey towards home ownership is to pick up the phone and give us a call. Talking to us is absolutely free, and we will make sure that you have all of the information you need to make sure that every penny you spend goes as far as possible.
Remember, we work for you, not the lenders. We will always show you the best products available, not products that we are merely being asked to sell.
Give us a call now on 0129 226 3001 to speak to one of our team, or fill in our contact form, and we will get in touch with you as soon as possible.