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Mortgage Repayment Methods

  • Capital and Interest
  • Interest only

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.

FCA does not regulate commercial mortgages and some forms of buy to let.
FCA does not regulate some forms of bridge loans.
For commercial mortgages and secured loans we act as introducers.

A combination of procuration fee (commission) from the lender and a fee of usually £500 is charged for advising and arranging your mortgage. In exceptional circumstances, the initial fee payable may be more or less than the fees detailed above. If this happens, we will explain the actual amount payable and the reasons why the fee is different. Once agreed, and before providing any services to you, we will confirm the actual total fee payable in our separate 'Service and Payment Agreement'.

PP Finances is a trading name of PP Associates Limited. PP Associates Limited is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Conduct Authority.

At outset of our first meeting, we will provide your 'Information about our services' and explain you the cost and charges of our services. This will help you decide if our services are right for you and provide you details of our complaints process and regulatory information.

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