Our Services > For Private Individuals > Mortgages

Mortgages

Buying a home is possibly the largest single expenditure most of us will make.

Mortgages, however, can be a confusing array of ever changing products. To help you choose the mortgage option that matches your needs, we will guide you through the benefits (and disadvantages) of repayment mortgages, endowment mortgages, ISA mortgages and pension mortgages.

We will also advise you on the rates – variable, fixed, capped and discounted – that are best for you.

The range of mortgages available are;

There are different ways to repay your mortgage - here is a brief outline of the most popular

Repayment Mortgages

You borrow a lump sum over a fixed period of time. You pay the interest and repay some of the capital each month to the lender. Although in the early years only a small amount of capital gets repaid you can be sure that the loan will be repaid by the end of the term. It is sensible - and many lenders insist - that term assurance [a mortgage protection policy] is take out to ensure that the mortgage is repaid in the event of your unexpected death.

Endowment Mortgages

You make monthly payments of interest to the lender and in addition a monthly payment to an insurance company for an endowment contract. There are two main types of endowment either "with profits" or "unit linked". Both invest in a range of assets including stocks and shares. The endowment fund builds up over the term of the mortgage to repay the outstanding capital.

Endowment Mortgages can be very flexible, they often include some element of life insurance cover and the value of the investment fund may grow to become greater than the value of the mortgage. However "endowments" are not risk free. Stock markets can go down as well as up and there is no guarantee that the fund will  be sufficient to repay the mortgage.

First class, independent financial advice is we consider essential for anyone contemplating an endowment mortgage

ISA Mortgages

You make monthly payments of interest to the lender and also invest in an ISA plan. The  plan builds up over the term of the mortgage to repay the outstanding capital. The ISA is similar to the endowment mortgage as it allows you to invest in cash, stocks and shares and life assurance.

ISA funds can grow quickly because most of the fund is invested in stocks and shares and because of the tax advantages offered by the ISA. They can be cheaper than an Endowment Mortgage. However the value of shares can go down as well as up and there are no guarantees that the ISA fund will grow sufficiently to repay the mortgage. There is also no guarantee that ISAs will continue indefinitely.

Buy to Let Mortgages

"Buy to Let" has attracted thousands of investors with the underlying asset forming part of a pension fund. However there are very significant tax and cost implications which must be carefully considered and independent financial advice is essential.

Contacts

For a free initial consultation please contact

Duncan Orr
Office: Seaford
Tel: 01323 892549
Email: Duncano@swindellsandgentry.co.uk
Joe Fackler
Office: Seaford
Tel: 01323 892549
Email: Joef@swindellsandgentry.co.uk

Swindells & Gentry Financial Planning Limited is an appointed representative of 2020 Financial Services Ltd which is authorised and regulated by the Financial Services Authority.