Frequently Asked Questions
Here are some answers to questions we are often asked. Please don't hesitate to contact us if there is something you are not sure of or would like to know more about.
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* Your existing lender may levy an early repayment charge if you re-mortgage
** The following APR relates to first time buyer and self certification mortgages only. The overall cost for comparison is 6.3% APR. The actual rate available will depend upon your circumstances, ask for a personalised illustration.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Q. What does APR mean?
A. The term APR refers to the Annual Percentage Rate. Introduced as part of the Consumer Credit Act in 1974, the APR is designed to indicate the total amount of interest payable over the term of a mortgage or loan. The APR is required by law, to be quoted by all businesses that lend money or advance credit.
Q. What is ASU Insurance?
A. ASU Insurance refers to income protection for Accidents, Sickness or Unemployment.
Q. What is a Capital Repayment Mortgage?
A. A Capital Repayment Mortgage is one where the monthly payments made by the borrower include capital reductions on the balance and interest payable. During the early stages of the mortgage most of the payments will cover the interest, therefore you will not see drastic decrease in the balance for the first few years.
As the payments continue the capital will be repaid and you will see substantial reductions of the balance.
Q. What is an Endowment Mortgage?
A. An Endowment Mortgage is one where you repay the interest of your mortgage only. Alongside your mortgage you will have an endowment life assurance policy for an established period of time, for example 25 years.
Over the course of the mortgage the only adjustments you will see to the balance are due to changes in interest rates or fees for applying for different interest rates.
At the end of the mortgage term you will be required to pay the outstanding balance with the proceeds received from the matured endowment policy.
The major disadvantage of this type of mortgage is the possibility of an endowment mortgage shortfall which can result from poor investment returns.
Q. What is an Interest Only Mortgage?
A.
Call Us
for home visits
throughout Norfolk
01362 851860
- First Time Buyers**
- Home Buyers
- Commercial Mortgages
- Secured Loans
- Buy To Let
- Self Employed**
- Re-Mortgages*
