Finding a mortgage can be stressful and time-consuming, with a wide range of products on the market and different lenders criteria that can be difficult to navigate on your own.
At Aspect8, our mortgage advisers work with you to simplify your options and guide you through the process. As part of your overall financial plan, they can do the leg work for you and will suggest well-researched options suitable for your unique situation.
Our advisers are experts in their field and are always up-to-speed with lenders’ criteria, which is particularly important if you are self-employed or own your own business. Whatever your situation, they are experienced in helping you find the right mortgage for your circumstances.
Taking into consideration your age, lifestyle and financial situation, our specialist mortgage advisers can navigate the whole of the market to find the best solution for you. They will help you every step of the way, from applying to funding, and will liaise on your behalf with your estate agent, lender and solicitor, ensuring a smooth transaction and minimal stress.
A repayment mortgage requires you to pay back a proportion of the amount you have borrowed, plus interest, every month. As long as you meet your monthly payments, you are guaranteed to have paid off your entire loan by the end of your mortgage term, typically 25 years. After this, you will own your home in its entirety.
An interest-only mortgage requires you to pay only the interest on the loan every month. You do not pay off any of the capital you have borrowed until the end of your mortgage term, at which point you must pay back the amount you borrowed in full. Therefore, you need another source of funds or income to pay back the capital you borrow. If you don’t already have savings or investments to do this you will need to set up what mortgage lenders call a ‘repayment vehicle,’ which might mean making monthly payments into an investment plan, such as a stocks and shares ISA. Interest-only mortgages carry some risk, as there is no guarantee that the money you’ve invested elsewhere will be enough to fully repay the mortgage when the term ends. You’ll need to monitor your plans regularly to make sure they stay on track to do this. Although interest-only monthly payments will be lower, you will pay more in total for an interest-only mortgage as you are always paying interest on the full amount borrowed. With a repayment mortgage, the amount of capital you owe gets smaller every month, so every month the interest also reduces. Talk to your adviser if you need further explanation of how this works.
Offset mortgages allow you to use your savings to reduce the amount of interest you pay. You can ‘offset’ your savings against the value of your mortgage, so you only pay interest on the capital you borrow, minus the balance of your ‘linked’ savings. You don’t actually use your savings to repay any of the mortgage (so you still have access to them) but your lender takes account of them and charges you less interest. On the flip side, you do not earn interest on the value of any savings you choose to ‘offset’. For example, if you take out a mortgage of £400,000, but offset it against savings of £50,000, you will only be charged interest on £350,000. So you effectively get £50,000 interest-free.
The guidance and/or advice contained within this website are subject to the UK regulatory regime, and are therefore targeted at consumers based in the UK. Aspect8 Ltd is a chartered member of Best Practice IFA Group Ltd which is authorised and regulated by the Financial Conduct Authority.Full details can be found on the FCA website, under reference number 227247.
The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.Aspect8 Ltd is registered in England, no. 07572431.