If you are reading this article you are clearly a cost sensitive consumer who does not want to see their money wasted on poor decisions. When it comes to an investment as significant as a mortgage, this is a very wise position to take. This article is aimed at helping you understand one of the more flexible types of mortgage, the benefits of which will be of interest to price savvy consumers such as yourselves.
In the current economic situation where growth is unstable and unpredictable, it can be impossible to get a mortgage giving you what you deserve. You may be on the brink of a large pay rise, but traditional, conservative mortgage brokers will not take this into account. Many may be defeated by this attitude and settle for an inequitable mortgage and house that they would be trapped in for 10, 20, even 25 years. But not you, you want something more and are prepared to fight for it.
Traditionally, if you were in this situation, you would have to settle for an interest only mortgage. This may allow low monthly repayments, giving you the ability to move up the property market or, perhaps, even allow you to acquire the house of your dreams. However, the hidden sting is the massive total repayment cost, which will most likely be hidden, unless you have a reputable mortgage broker.
So, what are the options for me, I hear you ask? How can we achieve success without horrific repayment costs sneaked into our contracts by underhand mortgage dealers? Well, a modern and interesting type of mortgage may well prove to be your salvation. The part and part mortgage has the benefits of both repayment and interest only mortgages, but with less down sides. It provides lower monthly repayments then full repayment mortgages that you can tailor yourself to your own needs and minimal extra interest rates, which can be offset against the savings your making. It works by choosing how much of your mortgage you want to pay off over the term of the mortgage, allowing you to set your monthly repayments accordingly. Then, at the end of the term, you use the savings you’ve made to pay off the remainder of the debt.
By Andrew Watson