Mortgages
A
mortgage is probably the largest financial commitment you are likely
to undertake. There is such an array of different mortgage products available that it is easy to become confused: choosing the mortgage with the lowest headline interest rate may not be the best option, if booking fees and arrangement fees, compulsory insurances, a higher lending charge and early repayment charges are also involved. Therefore,
it is absolutely essential that you seek professional, independent
advice to try to ensure that the mortgage product you finally select
is most appropriate for your circumstances.
Your home may be repossessed if you do not keep up repayments on
your mortgage.
Usually there is no fee, we will be paid by commission from the lender,
but, as MJR Financial Services is an independent mortgage firm, we
offer the facility for clients to pay a fee in place of receiving
commission from the lender.
A fee of £100 payable with your loan application and a fee of
£100 per hour for all subsequent work, payable on completion.
For example, it typically takes five hours to complete the advice
and recommendation process on a mortgage, therefore, the fee would
be £500, in total for instance.
Written quotations are available upon request.
Loans are subject to status.
There
are two ways of repaying your mortgage. These are briefly outlined
below:-
Repayment
Mortgage - You borrow the amount you require to help purchase
the property over a fixed term. You pay interest and some of the capital
to the lender on a monthly basis. This is the only method which, assuming
repayments are made in line with the lender's requirements, guarantees
repayment of the loan at the end of the fixed term. However, this
method can be slightly more expensive than an investment linked mortgage
and only a small amount of the loan is paid off in the early years.
Your home may be repossessed if you do not keep up repayments on your
mortgage.
Written quotations are available upon request. Loans are subject to
status. A deposit or life cover may be required.
Interest-only
Mortgage - Your payments to the lender will only represent the
interest charged on the loan and do not include capital repayment.
The original loan will need repaying at the end of the mortgage term,
so you will need to arrange some form of investment plan, designed
to generate sufficient funds to repay the loan at that time. You can
choose from various investment plans, such as ISAs, which have tax
advantages, an endowment policy or pension plan. If you move house
or arrange a re-mortgage, your plan can usually be re-allocated to
the new loan. You must remember that the outstanding debt will not
reduce over time and that there is no guarantee that your investment
plans will grow sufficiently to repay the loan on time.
Your home may be repossessed if you do not keep up repayments on your
mortgage.
Written quotations are available upon request. Loans are subject to
status. A deposit or life cover may be required.
