BUYING AND SELLING ▲ MORTGAGES - SUSSED! DO YOU KNOW YOUR SVRs FROM YOUR APRCs, OR A TRACKER FROM A CAPPED? HOME LOANS ARE THE MOST COSTLY DEAL YOU'LL EVER MAKE, SO UNDERSTAND THOSE FINANCIAL TERMS AND SAVE YOURSELF MONEY INTEREST ONLY vs REPAYMENT These are the two main types of repayment method. An interest-only mortgage means that your monthly payments cover just the interest on the loan each month but none of the actual mortgage amount. This means your mortgage payments will be lower but, at the end of the term, you'll still owe the entire sum you originally borrowed. The idea is you simultaneously make savings or investments, which will then allow you to pay off the full amount at the end of the mortgage. There is an element of risk as investments or savings may not provide enough to pay off your loan. A repayment mortgage charges you monthly interest plus a small amount of the actual loan. It is worked out so that at the end of the mortgage term, you'll have repaid all of the original amount you borrowed plus the interest; so you'll no longer owe anything. > SARAH SAYS 'A good mortgage broker will explain to you all the implications of different options. However, if you want to find out yourself, allow plenty of time to properly research the whole market.' www.athomemagazine.co.uk MAY 2017 | 045http://www.athomemagazine.co.uk