Mortgages - Coventry, Midlands, Warwickshire

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Repaying Your Mortgage Loan

You will need to select a method of repaying the loan, there are 2 main methods of repaying a mortgage.

Capital & Interest

With this method you agree to repay the loan on a monthly basis over a specific term.

The monthly payment consists of 2 elements, capital & interest. Total monthly payments will remain constant, unless interest rates change, but as each year passes the capital element of the payment increases, whilst the interest element decreases. Providing that all monthly payments are met in full, throughout the term, there will be no capital outstanding by the end of the agreement term.

Interest Only

With this method, you agree a term paying only interest on the capital, the balance owed remains constant throughout.

You will need a separate investment to run alongside the loan, to generate an amount equal to the capital outstanding at the end of the agreed term.

There are three main types of investment plans used for mortgage repayment. There are Endowment, Personal Pension and Individual Saving Accounts. All options have no guarantee and can be affected by variations such as interest rates and stock market returns. It would be your responsibility to maintain regular payments in to such plans. We do not provide advice in relation to investment products.

The Financial Services Authority does not regulate some forms of secured loans.

Holmes The Mortgage People is an appointed representative of Genesis Home Loans Plc, which is authorised and regulated by the Financial Services Authority for the conduct of non-investment insurance and mortgage business. Second charges, commercial loans and buy-to-let mortgages (where the resident is not related to the borrower) are not subject to Financial Services Authority regulations.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Genesis Home Loans Plc can be found on the FSA register (www.fsa.gov.uk/register) under reference 305920.
The information on this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.