The State of national mortgage

2008-05-22 15:32:16

( Financial )



Whether you are interested in abbey national mortgages, lennox national mortgage or monument mortgage, you will have some information about the state of national mortgage in general.

What do you need to know about national mortgage?

How much can you borrow?
This is based on how much you earn. Generally speaking as national mortgage trends stand you can borrow a certain amount times your salary a certain amount of gross salaries combined of co-borrowers.

As a trend of national mortgage, most lenders will lend almost all of the value or purchase price of the property. It depends which is lower. In certain cases you can even borrow as much as 100%.

Your mortgage can be paid between a certain number of years – but it must be paid before you are a certain age

What is the best national mortgage option available to me?
There are many ways to repay your mortgage. Here are some details about he various options offered:
• Variable Rate Mortgage: repayments fluctuate according to general interest rate movements. If the interest rate falls your monthly rate will fall as well. Similarly if the interest rate rises.
• Fixed Rate Mortgage: if you are on a tight budget you might not be able to risk an interest rate hike. With fixed rate mortgages the interest rate is fixed competitively for a certain period. This removes the risk of fluctuating interest rates.
• Annuity Mortgages: this is paid monthly during the loan term period. You pay off part of what you have borrowed plus outstanding interest. In the first years of repayment the capital amount you repay is lower. Most of the payment is interest. The amount owing gets less over the years and so the interest becomes less of the whole monthly payment. You can also get tax relief on the mortgage interest. Because the interest is more in the early years you benefit more from tax relief. It is useful because it is then that you are more likely to have less money.
• Interest Only Mortgage: you only pay the interest each month and the capital is repaid only at the end of the term. In this way cash flow is eased and tax relief is maximized. When you sell your property (and if you have made a profit) you can repay the capital from the monies of the sale.
• Pension Mortgage: under this method you pay interest monthly on the full amount borrowed during the term period and you qualify for tax relief. In addition you pay into a pension policy which also includes a life assurance able to pay off the loan if you die before the end of the term. At the term end you should have
enough money in your policy to pay off the mortgage as well as have a pension for
life . You can also get tax relief on your pension contribution.
an Endowment


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