How does a repayment mortgage compare with interest only?
A repayment mortgage includes part of your loan in each monthly payment, in addition to the interest charged. This allows you to gradually pay off the loan over the lifetime of your mortgage.
With interest only your monthly payments are as the name suggests, only interest. The full loan is expected to be paid at the end of the mortgage term and arrangements need to be made to do this.
Whatever kind of mortgage you are looking for Deal Direct can find you the right mortgage for your circumstances.
Interest only deals were popular in the past because they are cheaper, however new lending rules mean that repayment products may be the main mortgage market in the future.
How many repayment mortgage options are there?
The number of repayment mortgages has increased since a number of lenders withdrew or reduced the number of interest only products they offered.
New stricter rules on lending and affordability mean that the remaining interest only mortgages are much harder to secure as realistic plans for repaying the loan need to be demonstrated.
There is a wide range of options for repayment mortgages including fixed rates, trackers, variable and discounted rates.
In a very competitive market, building societies and banks are continually introducing and withdrawing products and adjusting rates on their existing mortgages.
Deal Direct are up to date on all mortgage market changes and are well placed to offer advice and a cheap mortgage quote.
Contact one of our skilled advisers today.
