1. www.footes-financialplanning.co.uk Mortgages explained

2. Introduction A mortgage is a loan secured on property Typical term of 25 years The most important points to consider are: Remember, if you do not keep up repayments on a mortgage, you could lose your house www.footes-financialplanning.co.uk How you pay the interest on the loan How you pay back the money you borrowed

4. Enables you to budget in the early years regardless of interest rate changes

6. For example – 0.5% for 3 years

7. Can be higher discount for shorter periods

9. Typically base rate + 0.5% or + 1.0%

12. Overpay with bonuses, inheritances or regularly with savings made elsewhere

15. No interest is charged on the equivalent amount on the mortgage

16. Net effect is your savings interest to the level of mortgage interest charged

17. Could offer tax benefits as no interest is being received on savingsInterest charged on £140000 Mortgage £150000 £600 pa Saving on mortgage payments ² Savings £10000

19. At the end of the term the mortgage is guaranteed to be repaid

21. Unit trust/ mutual fund investment

22. Pension

23. Sale of property