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| Repayment Mortgages |
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| With a repayment mortgage
your monthly repayments cover both capital and interest on the loan.
No other repayment vehicle is needed, but your lender may insist on
life insurance in case you die before the mortgage is cleared. |
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| On the plus side, a repayment mortgage is simple,
straightforward and easy to understand. It also avoids the risk of
investing in the stock market for your repayment vehicle. |
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| However, unlike a pension, ISA or endowment
mortgage, repayment loans do not give you the opportunity to benefit
from a rising stock market. Also, when remortgaging, people often
choose another 25 year repayment mortgage, to keep the initial monthly
costs down. This means that the overall total period of your mortgage
debts combined increases over time. |
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Think
carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your
mortgage. |
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| Copyright © RT Financial 2006-08. All rights reserved. |
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