Mortgages Direct can help no matter what your situation is, we will find the most suitable mortgage to fit your needs. We deal with major lenders, to ensure that you get the right deal.

Mortgage Agreement in Principle within 24 hours. We can arrange your Life and Critical Illness Cover, Unemployment and Sickness Cover and Home Insurance

Types of Mortgages

Repayment Mortgages
Here, you repay the capital and all the interest due over the selected term.

Every month you would pay part capital and part-interest. Initially the amount of interest in this repayment will be higher than in later years and as the repayment mortgages runs on. Initially the amount of interest will be higher than in later years

'Initially the amount of interest in this repayment will be higher than in later years and as the repayment mortgage runs on the amount of the capital repaid will be greater each month

It is normal for the lender to suggest that you take out Mortgage Protection, such as Life Cover (as well as Critical Illness, Sickness and unemployment, should you wish).  This is a good idea and provide protection to you and your family should the worse happen. Your Mortgages Direct adviser can help with this.

Endowment Mortgages, Pension Mortgages or ISA Mortgages
These are essentially Interest Only mortgages, where the “repayment vehicle” can be Endowment, Pension or ISA.

The capital is not repaid until the end of the mortgage period. The monthly mortgage repayments are the interest element only, and you are expected to contribute to a “repayment vehicle” at the same time, thus building up a lump sum with an aim to repay the original capital sum.

The different repayment vehicles work in different ways:

Endowments: This premium payment is split in part between a life insurance policy and an amount invested into investment funds. Over the years these funds attract capital growth, and by the end of the mortgage period need to equal the amount borrowed, as it is this that repays the capital borrowed. Depending upon your instruction, the skill of the investment managers and the performance of the fund, the final lump sum could be more or less than the loan. If it appears the lump sum will not cover the loan you will be required to increase the level of your endowment payments. Equally you will receive any surplus left from the policy after paying off your mortgage.

Pension Mortgages: If you have a personal pension scheme, a Pension Mortgage may be an appropriate option. A pension mortgage is similar to an Endowment Mortgage, in that interest only is paid off during the mortgage period. The difference is that the lump sum generated by your pension scheme on your retirement is used to pay off the capital. Rather than then paying premiums on an endowment policy, you make contributions to your pension scheme sufficient to ensure both the repayment of the capital element and a wealthy retirement. You will also need to have a separate life insurance policy to cover the capital sum, should you die before retiring.

ISA Mortgages: here you invest in an ISA (Individual Savings Account) as the repayment vehicle, and depending on the level of investment, skill of fund manager and performance of fund, you are looking to create a lump sum in order to repay the mortgage. You will also need to have a separate life insurance policy to cover the capital sum, should you die before the end of the mortgage.