Independent Insurance Advisors for the West Country
Mortgage Advice Grenville Westinsure
We can provide qualified advice when dealing with many aspects of financial issues involved with mortgages - from equity release to switch and save. If you have an enquiry that requires personal attention - just give us a call to arrange an appointment.
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Contact an Advisor
Our advisors can now be contacted via their own mail box. Simply click through to the our Team Page and you will be able to find the member of staff that you are used to dealing with on a day to day basis. We look forward to hearing from you.
Important
We are building a library of helpful FAQ sheets. They should help you to understand your own specific needs before we start dealing with all your life, personal and commercial insurance policies. The library will also include information about a number of investment issues.
Mortgages - contd.
This mortgage is designed to fully repay the initial sum over the term of the loan. The lender calculates the monthly payment required which will be part capital and part interest. In the early years the majority of your payments will be interest and the balance reduces slowly.
Interest Only Mortgage
As the name suggests, you only pay the lender the interest due each month on your mortgage. You do not make any capital repayments and the balance of your mortgage remains constant and does not decrease. It is your responsibility to maintain some vehicle or plan which will repay the debt at the end of the term. This could be an endowment plan, pension or ISA for example.
The “Rest” Period
This refers to when the interest on your loan is calculated. It could be once a year, each month or every day. Yearly rest calculates the interest due at the beginning of each year and effectively ignores capital payments you make until the next review date in 12 months time.
For repayment loans it would be beneficial to have a monthly rest account as the interest owed is recalculated each time you make a payment and reduce your debt. For people with a current account flexible mortgage with an active transaction pattern, the daily rest calculation would be more useful.