| There are number of options available when talking | | | | There are also low-start mortgages, which are |
| about current home mortgage rates. You can opt for | | | | designed to help borrowers over the early years of |
| pension-linked mortgages. It works in a similar way to | | | | the term. The lender agrees to charge below the |
| an endowment mortgage. You will make two monthly | | | | commercial interest rate for up to the first five years, |
| payments. One will consist of interest on the loan and | | | | and then charges the standard interest rate at the end |
| the other a separate monthly insurance premium that | | | | of this period. The lender will normally require the |
| will repay your loan at the end of the term. In addition, it | | | | interest, which has been unpaid in this initial period, to be |
| provides a pension for your retirement. | | | | paid off over the remainder of the term. These loans |
| If you have an interest-only mortgage then you will | | | | can be useful if you are sure that your income is going |
| only be paying interest on your loan. This type of loan | | | | to increase sufficiently by the time the full interest rate |
| is designed for those approaching or over retirement | | | | is charged to meet the increased monthly payments. |
| age who cannot take out a long-term mortgage. The | | | | On the other hand, there are fixed interest rate |
| amount borrowed is repaid on the sale of the property | | | | mortgages. This type of loan is for those who feel |
| or on the death of the borrower. Most lenders will | | | | able to gamble on changes in interest rates. In these |
| allow another interest-only loan if you move, and may | | | | loans the interest rate is fixed at the start of the loan, |
| offer loan facilities to your relatives if you should die | | | | either for a number of years or the whole term. |
| and they wish to keep the property. | | | | |