Tel: 01388 450222

Fax: 01388 458818

Email: mail@centrefinance.co.uk

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UNIVERSAL FINANCIAL ADVISERS OFFERING BROAD RANGE OF PRODUCTS

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Repayment

Repayment

Your home may be repossessed if you do not keep up repayments on your mortgage.

For mortgages we can be paid by commission or a fee, usually 0.75% of loan amount. On a mortgage loan of £100.000 this would be £750.00.

How does it work?

You borrow a lump sum over a fixed period of time (usually 25 years but can be shorter or longer). You pay the interest and some of the capital on a monthly basis to the lender.

ADVANTAGES:

  1. Some flexibility with repayments, such as making overpayments (more than the normal amount) and under some circumstances taking a payment holiday, making underpayments (less than the normal amount) or borrowing back previous overpayments.
  2. The only way you can be 100% certain the loan will be repaid, providing repayments are maintained.

DISADVANTAGES:

  1. Monthly mortgage payments may be higher than interest only mortgages covered by an investment/life assurance product to repay the capital.
  2. Only a small amount of capital is paid off in the early years as the monthly mortgage payment consists of a higher proportion of interest to capital repayment.