 |
Buying Your Own House/ Property
Buying your home or business premises is probably the biggest financial
commitment you will ever make. It is true to say that everyone dreams
of owning their own home. However, unless you are one of the lucky ones
who can afford to pay cash, you will need to borrow by way of Mortgage.
Choosing the right Mortgage is not a decision to be taken lightly. On
that decision rests your happiness and financial well-being and that
of your loved ones. So you must endeavour to find the Mortgage plan
that suits your own special situation. How does one do that? Well, that
depends on what you want. Do you want a mortgage plan with low costs
and high returns? A simple, yet flexible plan that is specifically designed
to cater for your personal needs or, perhaps, the old traditional type
of Mortgage.
TRADITIONAL
MORTGAGE The old style repayment mortgage takes your monthly payments
and divides interest on the loan and the capital value of the property,
paying off most of he interest in the early years and the capital later
on. This means that the tax relief you are entitled to receive on the
interest you pay decreases significantly, while the true net cost of
your monthly capital repayments increases, Therefore with a repayment
mortgage, the net cost of buying your house is still rising as you head
towards retirement which should be a time for saving money, not spending
unnecessarily.