call us now 01656 719 253
call us now 01656 719 253
This means that if you require a loan other than a mortgage (for example, a personal loan), we can refer you to a specialist third party who can discuss your specific needs with you. We will not advise you on this type of borrowing and you will need to make up your own mind whether to go ahead or not.
Capital and Interest Mortgages
An arrangement where part of the monthly repayment is used to pay the interest and the remainder is used to reduce the original amount of the loan. In the early years of the mortgage, most of the monthly repayment goes towards paying the interest; in later years, the proportion of the payment that is interest reduces (as more of the capital is repaid) and more of the repayment is available to reduce the loan amount.
Interest-only Mortgages
Interest only mortgages are a type of mortgage where the regular payments only cover the interest that is due. The full capital amount remains outstanding during the mortgage term and is repaid in one lump sum at the end of the term.
Lenders require evidence that a customer will have in place a clear credible repayment strategy and that the repayment strategy has the potential to repay the capital borrowed.
Repayment strategies may include investment product(s), pension(s), periodic repayment of capital from irregular sources of income (i.e. bonuses), the sale of another property or other land or other acceptable methods which meet lending criteria. It will not normally be appropriate to use deposit accounts as a repayment strategy as the rate of interest charged on the mortgage is normally greater than the interest earned on the deposit.
This means that the mortgage payments made each month to the lender will be lower than those of a repayment mortgage for a similar loan and term. However, borrowers must remember that the cost of their repayment vehicle/strategy needs to be taken into account when calculating the overall costs of the mortgage arrangement and especially when comparing those costs to the cost of borrowing on a capital & interest basis.
Having decided on the loan repayment method, the borrower then needs to consider what kind of mortgage they want. The main options, some of which may or may not be available depending on the mortgage market and general economic conditions prevailing at the time.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
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IT Mortgages and Finance Limited, 28 Timbers Green, Llangan, Vale of Glamorgan, CF35 5AZ
Think carefully before securing other debts against your home.
Third party links – Please note that by using any third party links included in this website you will depart from the regulated site of IT Mortgages and Finance Limited, who are not responsible for the accuracy or the content within the non-regulated site.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We charge a fee of £500 for providing advice and submitting your mortgage application. This fee becomes payable on application. However, we do not charge a fee for Product Transfers.
Non-Investment Protection and General Insurance Contracts. We do not charge a fee as we will receive commission from the provider/insurer after the policy has been placed on risk.
Registered office: IT Mortgages and Finance Limited. 28 Timbers Green, Llangan, Vale of Glamorgan, CF35 5AZ.
IT Mortgages and Finance Limited is registered in Registered in England and Wales: 05287015.
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at customers based in the UK.
IT Mortgages and Finance Limited is Authorised and Regulated by the Financial Conduct Authority. IT Mortgages and Finance Limited is entered on the Financial Services Register https://register.fca.org.uk/ under reference 978139.
The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
If you wish to register a complaint, please write to IT Mortgages and Finance Limited, 28 Timbers Green, Llangan, Vale of Glamorgan, CF35 5AZ or telephone 01656 719 253. A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4 567.
