Mortgages arranged by Mitchell Prockter Financial Services of Bedford

For most people, your home will be the largest single investment you will ever make, so making the wrong decision could become a very expensive mistake. Taking the wrong mortgage can end up costing thousands extra over the lifetime of the loan, and what appears to be the cheapest on day one will not always prove to be so over an extended period of time. This is where we can help.

Some of the types of Mortgages available:

Capital & Interest

This is the simplest type of mortgage. The payments you make to the lender every month pay off both the capital and the interest from the loan. Providing you keep up the payments, you are guaranteed to pay off the loan by the end of the term agreed (usually 25 years).

Interest Only

An interest only mortgage is where the lender (a bank or building society) only charges you interest on the loan you've agreed. You don't pay the capital back until the end of the mortgage. The lender will usually ask you at the outset to provide an investment plan of one type or another to repay the loan at the end of the term, such as an endowment policy or ISA savings plan, but sometimes they will leave the repayment plan entirely up to you. You then pay this interest every month to the lender for the duration of the loan. The lender calculates your monthly repayments based on how the rate is set. At the end of the loan period, the lender will expect the initial capital they lent you to be repaid in full by whatever means you have arranged.

Flexible

The flexible mortgage has the facility for both over and underpayments built into the loan. What this means is that you can overpay your mortgage when finances allow (pay rise, bonus etc.), and then, providing you have made overpayments in the past, underpay when finances are tight (job loss, change in circumstance etc).

If you make overpayments on a flexible mortgage, that cumulative amount is then made available as a cash reserve for you to draw on at any time during the remainder of the mortgage term. This cash reserve can normally be drawn on for such things as, taking payment holidays or making large purchases. However the amount you can withdraw is limited by the original sum of the loan.

The main benefit of borrowing against your 'mortgage account' is that mortgages are usually the cheapest form of borrowing. In other words, you'll pay less interest on the amount you borrow! If on the other hand, you overpay but never make any withdrawals, you can save a significant amount of interest over the life of the loan.

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

		Mortgages
		For most people, your home will be the largest single investment you will ever make, so making the wrong decision could become a very expensive mistake. Taking the wrong mortgage can end up costing thousands extra over the lifetime of the loan, and what appears to be the cheapest on day one will not always prove to be so over an extended period of time. This is where we can help. Some of the types of Mortgages available: Capital & Interest This is the simplest type of mortgage. The payments you make to the lender every month pay off both the capital and the interest from the loan. Providing you keep up the payments, you are guaranteed to pay off the loan by the end of the term agreed (usually 25 years). Interest Only An interest only mortgage is where the lender (a bank or building society) only charges you interest on the loan you've agreed. You don't pay the capital back until the end of the mortgage. The lender will usually ask you at the outset to provide an investment plan of one type or another to repay the loan at the end of the term, such as an endowment policy or ISA savings plan, but sometimes they will leave the repayment plan entirely up to you. You then pay this interest every month to the lender for the duration of the loan. The lender calculates your monthly repayments based on how the rate is set. At the end of the loan period, the lender will expect the initial capital they lent you to be repaid in full by whatever means you have arranged. Flexible The flexible mortgage has the facility for both over and underpayments built into the loan. What this means is that you can overpay your mortgage when finances allow (pay rise, bonus etc.), and then, providing you have made overpayments in the past, underpay when finances are tight (job loss, change in circumstance etc). If you make overpayments on a flexible mortgage, that cumulative amount is then made available as a cash reserve for you to draw on at any time during the remainder of the mortgage term. This cash reserve can normally be drawn on for such things as, taking payment holidays or making large purchases. However the amount you can withdraw is limited by the original sum of the loan. The main benefit of borrowing against your 'mortgage account' is that mortgages are usually the cheapest form of borrowing. In other words, you'll pay less interest on the amount you borrow! If on the other hand, you overpay but never make any withdrawals, you can save a significant amount of interest over the life of the loan. Remember: Your home may be repossessed if you do not keep up repayments on your mortgage.