![]() ![]() The criteria to get an interest only mortgage are far tougher than a repayment mortgage and include a large deposit, as well as a clear repayment schedule for how you’ll repay the full loan at the end of the term. Repayment mortgages are more common and easier to get than interest only mortgages. Lenders will look for evidence that you could pay off the mortgage with savings, other investments, or by selling the property itself. For this reason, you’ll need to be able to prove to mortgage lenders that you will be able to repay the full borrowed amount before they approve the mortgage. When your interest only mortgage term ends, you must repay the full amount you borrowed at the start. What happens at the end of an interest only mortgage term? With a standard repayment mortgage with the same term and rate, your monthly repayments would be £897. On an interest only mortgage of £200,000 over 25 years with an interest rate of 2.5%, your monthly repayments would be just £417. Your monthly payments are higher than interest-only payments, however, by the end of the mortgage term you will have paid off both the loan and the interest owed. In contrast, a repayment mortgage is a mortgage where the monthly payments go towards both the interest on the loan, and the loan capital amount. But you end up paying more interest over the full mortgage term. This means your monthly payments are much smaller than with a repayment mortgage. If you choose an interest only mortgage, you just pay back the interest on the money you borrowed. How to pay off an interest only mortgage early.The Financial Conduct Authority does not regulate some forms of Buy to Let. Trinity FG Ltd is an appointed representative of PRIMIS Mortgage Network, PRIMIS Mortgage Network is a trading style of Advance Mortgage Funding Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 305008) for mortgage and non-investment insurance advice. Trinity Financial is a trading name of Trinity FG Ltd. Registered in England and Wales at 2nd Floor, 13 Charles II Street, London, SW1Y 4QU. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone. ![]() Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 2018. You voluntarily choose to provide personal details to us via this website. A typical fee is £495 plus we will receive commission from the lender. A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances (i.e. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Your home may be repossessed if you do not keep up repayments on your mortgage. For more please read our guidelines below: The guidance and/or advice contained within this website is subject to the UK regulatory regime and primarily targeted at consumers based in the UK. Thanks Richard, my wife and I are much appreciative of your valuable time. Richard's approach has always been calm, informative, not pressured and, as evident by the results, unrelenting to opportunities and market status. It was not contact every day, and we did not need contact every day, what we found was that he was maintaining contact with other institutions (banks and private lenders) when appropriate and making immediate contact with us when an opportunity was available and further specific information required. He found options, and in that process would say "let me keep working this and I will see if I can get a better arrangement figured" and he did, despite being very busy. Richard took the time to explain options and then just kept working the challenge. Richard Forgione and the Trinity team took on a challenging task - where others were not successful - and arranged finance with a Main Street bank. I've not been asked to write a review, but the high level of service with results compels me to do so. ![]()
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