Mortgage Information
Guidance on Mortgage Lenders
When considering home ownership, it is important that you choose the right mortgage from a qualifying lending institution, which is authorised under the Financial Services and Markets Act 2000, and which has permission to enter into regulated mortgage contracts.
This is likely to include most banks and building societies. The Financial Services Authority keeps a register of authorised persons on its website. The register can be found at www.fsa.gov.uk/Pages/register/index.shtml.
Repayment Methods Explained
Repayment (also known as Capital and Interest mortgage)
Repayment is the traditional means to pay back a mortgage – you make payments every month, part of which goes towards repaying the money you have borrowed (the capital) and part of which pays the interest on the loan. In the early years of a repayment mortgage, more of the instalment goes on paying the interest than the capital. Over time, as more of the capital is paid off, the proportion of interest decreases.
The advantage of a repayment mortgage is that provided you have kept up with the monthly payments you are guaranteed to have paid off the loan by the end of the mortgage term.
Interest-Only
With an interest-only mortgage, you do not repay any of the capital until the end of the mortgage term. Your monthly repayments will consist only of the amount of interest due. At the end of the mortgage term you will still owe the original amount borrowed, and it will be your responsibility to ensure you have the means to repay this capital sum.
PLEASE NOTE THAT, WHILST THE OPTION OF AN INTEREST-ONLY MORTGAGE EXISTS, WE SHALL NOT APPROVE THIS TYPE OF MORTGAGE FOR THE PURPOSES OF OUR LOW COST HOME OWNERSHIP SCHEMES.
This calculator is provided for guidance only. Guinness Homes is not authorised to provide financial advice and this mortgage payment calculator does not provide all of the information you will need to choose a mortgage. We recommend that you consult an independent financial adviser from our recommended list, who will issue you with a Key Facts Illustration and help you choose the right mortgage to suit your circumstances.
REMEMBER, IF YOU CANNOT MAKE REPAYMENTS ON YOUR MORTGAGE OR PAY BACK THE MONEY YOU OWE, THERE IS A RISK YOU COULD LOSE YOUR HOME.
