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Notes
1. The
above figures assume an annual rest type mortgage which
recalculates mortgage payments once a year. As such they may
slightly overstate the monthly payments for more flexible
mortgages, offering monthly or even daily recalculation of
payments.
2.
Since April 2000 mortgage loans have not attracted mortgage
interest tax relief (MIRAS).
3. A
repayment mortgage is one where
mortgage payments cover both interest costs and repayment of the
original loan, so that the mortgage amount decreases over time. An
interest only mortgage is one where mortgage payments only cover
interest costs. With interest only loans, the mortgage amount does
not Automatically decrease over time. Frequently, borrowers will
set up an ISA, endowment or some other investment product (at
additional cost), designed to repay the loan at the end of its
term.
“Your home may be re-possessed if you do not keep up
repayments on a mortgage or loan secured on it” . |
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