Liberty Partnership

Financial Advisors In Cambridge: What Are The Disadvantages Of An Interest-Only Mortgage?

Financial advisors in Cambridge are available to assist you with complex financial matters, so that you make the best choices when it comes to your money. This can include pensions and specific insurances, for instance – but one key decision many of us have to make is when it comes to our mortgages. Having an expert to guide you in this respect can pay dividends.

One type of mortgage that many consider is an interest-only mortgage. Although these types of mortgages do have a number of advantages, they have disadvantages too. A professional independent financial advisor Cambridge will ensure that you are well aware of the drawbacks when it comes to organising an interest-only mortgage so that you can make an informed decision. What are likely to be the main disadvantages? Well, since you are not paying off the bulk of the loan itself, but only the interest associated with it, you will need to make provision for paying off the mortgage at the end of the term. This might be through putting money into an ISA or savings account. Failure to do this throughout the course of the mortgage could mean you default on the end payment, losing your property and any equity along with it. An expert in Cambridge financial services will assist you to manage your finances along the way. Care is needed, for instance, on where your money is invested. If that investment does not grow sufficiently, there may not be enough to cover the end debt. Also, re-mortgaging may not be an option along the way as there will be little equity in a property with an interest-only mortgage.

Whatever kind of mortgage you might want, financial advisors in Cambridge will be able to give you all the required information. At Liberty Partnership Ltd, we are proud of our expertise and experience. Find out more about our services at https://liberty-partnership.co.uk, or contact us on 01778 342291 or advice@liberty-partnership.co.uk.