Today’s mortgage market is a competitive one with mortgage providers and financial institutions bombarding borrowers with a plethora of types of mortgages. Whilst the best type of mortgage suitable for the individual will be entirely dependent on personal circumstances. Some research into the basic types of mortgages available may be the best place to start, before going on to consider more complex mortgage products.

The Interest Only Mortgage Versus The Repayment Mortgage

One of the basic considerations in applying for a mortgage is to consider whether to opt for a repayment mortgage or an interest only mortgage:

• Repayment Mortgage – This is one of the most common mortgage products and will be option suitable for many borrowers. Under this arrangement the borrower pays back a sum each month which covers the interest charge, plus a repayment on the capital of the mortgage. In the early period of the mortgage the greatest amount of the monthly repayment is used to fund the interest charge. As the mortgage is repaid over a number of years, the proportion of the monthly repayment which is used to fund the interest charge will reduce, with a rising proportion being used to repay the capital element.

• Interest Only Mortgage – The interest only mortgage sees that monthly repayments are made only at the value of the interest charge on the balance of the mortgage. As such, the borrower never reduces the outstanding capital balance of the mortgage through the monthly repayments on an interest only mortgage. In order to repay the capital on the mortgage, the borrower then saves or invests an amount of money each month which at the end of the term of the mortgage is used to repay the loan.

• International Business Market

• Marketing A B2c Web Site

• Letterbox Marketing Ireland

• Fishmarket Great Eastern Hotel

• Internet Marketing Online