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Tel: 0115 859 0012 M: 07815 161 935

Dependable Finance
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Interest Only

How does it work?

Your monthly payments represent only the interest due to the lender, and do not include repayment of capital.

Lenders require evidence that a customer will have in place a clear, credible repayment strategy and that the repayment strategy has the potential to repay the capital borrowed.

Repayment strategies may include deposits or investment product(s), pension(s), periodic repayment of capital from irregular sources of income (i.e. bonuses), the sale of another property or other land or other acceptable methods which meet lending criteria.

Where the repayment of capital is an investment, the investment runs alongside the mortgage but is separate from it, the cost should be taken into account when calculating the overall costs of the mortgage arrangement.

ADVANTAGES:

  1. You can choose from a variety of investments, some of which have tax advantages.
  2. Should you move or arrange a remortgage, your investment can usually be reallocated to the new mortgage.
  3. Normally cheaper than repayment mortgages.

DISADVANTAGES:

  1. Unlike a repayment mortgage, the amount of debt outstanding does not reduce over time
  2. There is no guarantee that the investments chosen will grow sufficiently to repay your loan.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.

TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.


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Company address:
Dependable Finance Ltd, 358 Loughborough Road, West Bridgford, Nottingham, NG2 7FD
T: 0115 859 0012 M: 07815 161 935
F: 0115 859 0012

Email: advice@dependablefinance.co.uk

Registration address:
Unit 24 Wilford Business Park, Ruddington Lane, Nottingham, Nottingham NG11 7EP
Registration number: 5391379

Dependable Finance Limited is an Appointed Representative of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.

Openwork is entered on the Financial Services Register (www.fsa.gov.uk/register/firmSearchForm.do) under reference 408285

The information on this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

Telephone: 0115 859 0012 M: 07815 161 935 | advice@dependablefinance.co.uk

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