Mortgages

This type of repayment method is suitable to most clients especially residential mortgages. It is strongly recommended to clients who are not prepared to take risks with your mortgage liability. Capital and Interest only mortgage is designed to use each monthly payment to pay back interest accrued on the loan plus a proportion of the capital outstanding. If you keep up your payments, it guarantees that your entire loan will be repaid at the end of the mortgage term.

This type of repayment method is generally selected when purchasing an investment property. Only the interest on the borrowed loan amount is repaid on a monthly basis and the capital will need to be repaid at the end of the term. Generally, lenders expect an investment backed repayment vehicle to be in place to ensure security but this may fluctuate to some extent and may fall short at the end of the mortgage term. Alternatively, it is recommended that you make regular monthly extra payments to ensure that full mortgage capital amount is paid off by the end of the term. It is your responsibility to review your investment regularly.