What kind of mortgage do you want?
With so many options available plus so much industry terminology, it can be difficult to decide which mortgage plan is best for you! HSC Finance is committed to providing every client with the best possible product, tailored to suit your individual needs. To help you to choose the best mortgage, take a look at the following options:
Repayment
Your monthly mortgage repayments comprise of capital and interest payments combined so that by the end of the mortgage term, you have paid off the original amount borrowed plus any interest that has been accrued. This type of mortgage is therefore suitable for people who want the peace of mind of knowing that their mortgage will be paid in full at the end of the term.
Interest only
An interest only mortgage is structured so that only the interest is paid back to the lender each month. The original loan amount remains the same for the term of the loan. A suitable investment plan is usually set up in order to repay the loan at the end of the term e.g. an endowment, an ISA or pension plan.
Flexible
A flexible mortgage allows you to over-pay, underpay and take payment ‘holidays’ without incurring any penalties. Any over-payments can be used to build up a cash-reserve which can be used at a later date to reduce future mortgage payments or can be drawn-down if cash funds are required in the future. Most flexible mortgages have the interest calculated daily so that the capital balance is reduced and interest charge recalculated immediately. Overpaying on your mortgage can lead to your mortgage being paid off sooner and as a result you can save thousands of pounds in interest. Many lenders now offer a combined flexible mortgage and current account, which enables borrowers to off-set any savings and investments against their mortgage debt. These schemes also offer full banking facilities such as cheque book, debit and credit cards. Under payments, over payments and payment holidays will be subject to any amounts that you have previously overpaid.