If you are considering taking a mortgage to buy a new house, there are a number of different categories of lenders you can choose from. It is important to remember that the total cost of the mortgage will depend on the interest rates applied to the loan. The interest rates applied by lenders of each category will be more or less the same, depending on the loan amount and the tenure of the mortgage. However, what will differ from lender to lender are the terms and conditions applied to the mortgage. The options available for the repayment of the mortgage are one of the most widely differing factors among mortgage lenders. Here are some mortgage repayment options you should consider before choosing the lender that best suits your requirements.
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Does the mortgage allow me to make payments as and when I have funds, and reduce the outstanding capital?
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Can I pay more than my fixed monthly amount towards the repayment of my mortgage, if I have excess funds?
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If I do increase my monthly repayment amount at some time during the tenure of the loan, can I again reduce it to the original amount, if I can not afford to make large payments any more?
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Can I increase or decrease the frequency of the loan repayment depending upon the availability of funds?
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Can I repay my loan before the tenure is complete? If so, what are the pre-payment charges I will need to pay at that time?
If you are stil unsure and need further financial advise then there are numerous website offerining free financial information, tips and advice. A few examples of these sites are: www. financial advice .co.uk, www.your financial issues.com and www.telegraph.co.uk/financial.
