Interest Only Mortgage
With this type of mortgage every mortgage payment is only used to pay off the interest element of a mortgage. At the same time the borrower takes out an alternative known as a ‘repayment vehicle’ (method of paying off the mortgage) such as an ISA, pension plan or endowment policy. More information on endowments (which in the 1980’s and 1990’s were extremely popular), ISAs and Pension plans is set out below. The most important fact about an interest only mortgage is that the monthly repayments do not repay any of the outstanding capital balance. As a consequence it is important that the payments are maintained into the repayment vehicle or otherwise it will not be possible to pay off the mortgage at the end of the agreed repayment term.
First Time Buyer
If you're new to the housing market. See the ways in which we can help you get a mortgage. Find out moreInterest Only Mortgage
Save hundreds every month by paying back the interest only on your mortgage. Find out moreFixed Rate Mortgage
With a fixed rate mortgage the amount you repay the lender each month can be at a fixed interest rate for a specified period of time. Find out moreVariable Rate Mortgage
Borrowers paying the Standard Variable Rate will have their payments increase or decrease as the lender adjusts the rate in accordance with market conditions. Find out moreCapped Rate Mortgage
A capped rate mortgage is very similar to a fixed rate mortgage except that if the variable rate drops below the capped rate, the borrower will make payments based on the lower variable rate Find out moreRepayment Mortgage
A standard mortgage where you pay the borrowed amount and interest over time. Find out moreEdowment Mortgages
This is the most common type of interest only mortgage which also provides life assurance cover and a fixed payment for investment. Find out moreISA Mortgage
The Individual Savings Account (ISA) is a tax free method of saving. Find out morePension Plan Mortgages
Life assurance cover is provided and monthly payments are made into a pension fund. Find out moreDiscounted Rate Mortgage
We offer a discount on the Standard Variable Rate (SVR) for a specific period of time. Find out moreFlexible / Lifestyle Mortgages
A Flexible or ‘lifestyle’ mortgage is designed to let you make extra repayments when you have extra money. Find out moreOffsetting Mortgages
A flexible mortgage linked to a current and/or savings account held with the lender Find out moreCash Back Mortgages
The Lender, as an incentive, will offer a lump sum of cash once the mortgage has been taken out. Find out more95% Mortgages
95% Mortgages are now available through Rite Financial. Find out more. Find out more