Liberty Partnership

Financial Advice In Cambridge: The Advantages Of An Interest-Only Mortgage

Financial advice in Cambridge regarding mortgages may be offered by a number of sources, including banks, building societies and other lenders. But for preference, you will seek advice from independent financial advisors. They have an unbiased overview of the options and can help you determine what’s best for your own circumstances.

A financial advisor Cambridge will help you achieve what’s required when it comes to a mortgage application. One decision that may need to be made is whether to opt for a repayment mortgage or an interest-only one. There are advantages and disadvantages to both; and your advisor will talk you through these before you make your decision. Looking at a few of the advantages to an interest-only mortgages, for instance, monthly payments tend to be cheaper than those on a repayment mortgage. However, your expert in Cambridge financial services will explain that this is because you are not paying for the house: just interest on the loan. But because the interest-only mortgage is less expensive, there is less chance of falling into arrears through non-payment. Plus, they are, in the main, flexible. This means that you could take out an interest-only mortgage to begin with, and then change to a repayment mortgage once your finances are settled. This flexibility is invaluable if you know your financial position is set to improve, by inheriting money receiving a promotion at work, for example. Additionally, if you are a buy-to-let investor, there can be tax advantages to having an interest-only mortgage.

If you need to know whether an interest-only mortgage is best for your circumstances and what the risks might be, come to Liberty Partnership Ltd for financial advice in Cambridge. We have many years of experience in all aspects of finance. See our website at https://liberty-partnership.co.uk for further information, or contact us directly on 01778 342291 today.