About mortgages

Your personal flower adviser can give you a detailed explanation on each specific mortgage option available to you - but as a general guide, the three main mortgage types are:

Repayment mortgage

• This involves monthly payments that initially pay the interest on the loan, but later will go towards reducing the loan itself.
• Once you’ve made the final payment, the mortgage is finished (providing all the repayments have been made).

Interest-only mortgage

• You only pay interest on the loan for the entire term of the mortgage.
• Usually, you also pay into an investment product at the same time (typically an endowment or ISA), and this will be used to repay the full amount of the loan at the end of the term.
• This mortgage type offers more flexibility for people who regularly move house.

Combined mortgage

• Both repayment and interest-only methods are used to repay the loan. This may happen if, for instance, you already have an investment policy in place before seeking a mortgage.

Finding the right match for you

Whichever mortgage product and repayment method we recommend for you, your mortgage needs to fit your life, your budget and your individual needs. So there are other important factors we’ll consider, such as:

• fixed or variable rates – usually influenced by the current Bank of England base rate
• size of deposit
• mortgage portability
• early repayment options.