Part Repayment Part Interest Only Mortgage
Part And Part Mortgage
Our Mortgage Service - helping you make the right decision
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support".
As your mortgage is such an important transaction, good advice is imperative.
Our independent mortgage broker service provides:
-
FREE initial mortgage consultation
-
Access to exclusive mortgage deals not available on the high street
-
A dedicated mortgage adviser and case handler to deal with your mortgage from enquiry to completion
Part Repayment Part Interest Only Mortgage
Certain lenders allow borrowers to take out a part repayment part interest only mortgage or ‘part and part mortgage’. These allow a borrower to take out a single mortgage on a property with one portion of the loan on a capital and interest repayment basis and the other portion on an interest only basis, with the remaining balance being required to be repaid at the end of the mortgage term in full.
How a part and part mortgage works
With this kind of mortgage a borrower’s monthly instalment is made up of interest charge for the whole of the loan and it also repays some of the repayment portion of the loan. This kind of mortgage often allows the borrower to choose what ratio of the mortgage is on a repayment basis and what’s on an interest only basis.
For example, on a mortgage of £50,000 the borrower could opt to have 50% of the loan on a repayment basis and the remaining 50% as interest-only.
This means that over the course of the mortgage’s full term their monthly payments would have repaid the full £25,000 of the repayment portion as well as any interest that accrued on the whole debt; the borrower would then need to pay the remaining £25,000 in a full one off payment.
It is the borrower’s full responsibility to ensure that at the end of the mortgage term they have sufficient capital to repay the interest only element of the loan. During application some lenders may require detailed information about how the borrower is intending to raise the necessary funds to repay the interest-only portion over the mortgage’s term.
Before you apply for a mortgage
Before applying for a mortgage it can be wise to shop around various lenders in order to try and find the most suitable product available to you. If you have been considering a part repayment part interest-only mortgage, you may also want to consider a full repayment or interest only product.
The specific financial details of an applicant will affect exactly what mortgages are available to them, this could include things such as: the size of the deposit they have, their income, existing financial commitments and their credit history.
Mortgage adviser
If looking for a mortgage you may benefit using the services of an independent mortgage adviser. An adviser who offers a whole-of-market service can search across various different lenders to try and find the best deals for their clients, as well as providing them with impartial advice.
To find out if Fair Mortgages could help you, you can fill in the call-back form to request a call from a Fair Mortgages adviser, who can offer a free initial consultation. Or you can call directly on: 0117 403 4474