Most mortgages today typically have terms that let you make additional contributions to reduce your loan faster. Mortgages can offer options to contribute less than the monthly amount you agreed or miss a few payments [payment holiday] by agreement at the time of request. The price for this flexibility is often a higher interest rate.
There are many different styles of interest applied to mortgages and this can be more complex when one considers that interest may be chargeable to mortgage account either on a daily, monthly or less commonly now, annual period. This can have major implications when considering additional payments to reduce the term of a mortgage.
A parting thought…
Whatever your borrowing requirement it is usually advisable to ensure the payments can be met, even if the borrower’s health or income are interrupted through accident or ill health, or even death.
- How will you meet your long term loan commitments if your income is interrupted,
either by illness or death?
- Ask us about solutions – before you need to rely on them…
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOUR DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.