info@gladstonemortgages.com  Tel: 01872 306411
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    • First time buyer zone >
      • Home buying process
      • What are the costs?
      • Types of mortgage product?
      • Repayment methods
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    • Buy to let >
      • Things to consider
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  • Home
  • About us
  • Why get advice?
  • Contact us
  • Mortgages
    • First time buyer zone >
      • Home buying process
      • What are the costs?
      • Types of mortgage product?
      • Repayment methods
    • Home movers
    • Remortgage
    • Buy to let >
      • Things to consider
    • Large mortgages

Repayment Methods

When discussing repayment methods, what lenders are really asking is the simple question of how are you intending to repay your mortgage? The traditional and most common way to repay the mortgage is by taking it on a capital and interest repayment basis, where each monthly payment consists of an element of interest and an element of capital repayment, so month by month the mortgage is gradually repaid. This gives the certainty that by the end of the term, provided you have kept up your repayments, the mortgage is guaranteed to be repaid.

The alternative option is to have the mortgage on an interest only basis. This is where each month you only pay the interest on the loan, and the balance of the mortgage remains the same until the end of the term when you will be expected to repay all of it, unless you have done so already. For interest only mortgages the lender will expect you to have some form of formal repayment vehicle in place, such as an endowment or perhaps the sale of another property which you already own. Each lender has their own criteria in terms of what kind of repayment vehicle they find acceptable and it is best to seek advice when considering these.

Providing you have an appropriate repayment vehicle you can also take the mortgage on a part repayment and part interest only basis.
Your property may be repossessed if you do not keep up repayments on your mortgage.

The FCA does not regulate some forms of buy to let mortgages.

For mortgages we usually charge a fee of £295 plus commission from the lender.

Gladstone Mortgage Services Ltd. Registered Office: 82 St John Street, London, EC1M 4JN
Registered in Engand, No: 9728203

Gladstone Mortgage Services Ltd is an appointed representative of Sesame Ltd, which is
authorised and regulated by the Financial Conduct Authority.
Tel: 01872 306411
Gladstone Mortgage Services Ltd
Meridian House
Heron Way
Truro
TR1 2XN