Notes:
1. The above figures assume
an annual rest type mortgage which recalculates mortgage
payments once a year. As such they may slightly overstate
the monthly payments for more flexible mortgages, offering
monthly or even daily recalculation of payments.
2. Since April 2000 mortgage
loans have not attracted mortgage interest tax relief (MIRAS).
3. A repayment mortgage is
one where mortgage payments cover both interest costs and
repayment of the original loan, so that the mortgage amount
decreases over time. An interest only mortgage is one
where mortgage payments only cover interest costs. With
interest only loans, the mortgage amount does not automatically
decrease over time. Frequently, borrowers will set up an
ISA, endowment or some other investment product (at additional
cost), designed to repay the loan at the end of its term. |