Liberty Partnership

Independent Financial Advisors Cambridge: What Are The Disadvantages Of A Repayment Mortgage?

Independent financial advisors Cambridge wide offer support and advice in relation to all aspects of your finances. If you want to arrange a mortgage but don’t know where to start, an independent financial advisor will analyse your options and make recommendations on the best for your circumstances. Should you consider a repayment mortgage, for instance?

Although there are a number of advantages when it comes to having a repayment mortgage, as your financial advisor Cambridge based will tell you there are also disadvantages. In order to make the right decision for your situation, you need to know about both sides of the mortgage you are thinking about having. The disadvantages of a repayment mortgage include the fact that the monthly repayments are larger than an interest-only mortgage. This is because you are paying not only the interest, but also some of the capital of the original loan. This may not suit your budget, and so Cambridge financial services will be able to help you with other options. At the beginning of the loan, the capital being repaid is a small amount. One option, therefore, is to take out an interest-only mortgage to start with, and then change it to a repayment mortgage later on when your income has increased. Another disadvantage is that some mortgages impose financial penalties if you make overpayments, which means you can’t reduce the term of the mortgage easily. Not all repayment mortgages have this penalty built into them – in fact, some of them actively encourage overpayments, or you can offset your mortgage against your savings. Your financial advisor will find the right product for you.

There are so many different options when it comes to mortgages, pensions, insurances, investments and more that it can feel overwhelming to go it alone. Contact Liberty Partnership Ltd, the best independent financial advisors Cambridge based, for advice. Call us on 01778 342291 or, or see our website at for further details.