Interest Only Mortgage
An interest only mortgage requires you to make monthly payments to the mortgage lender in order to pay off the interest on the amount borrowed. In addition to this, you will need to establish a separate long-term investment plan so enough funds can be accumulated to pay off the full amount at the end of the repayment period.

The investment plan required to pay off the mortgage usually comes in one of three forms:

i) A low-cost endowment - also includes life cover but is rarely used nowadays and have been withdrawn by most finance companies
ii) An ISA - money you pay in grows tax free
iii) A Pension - Up to 25% of your fund value can be released as tax free cash from the age of 55

You can choose an ‘investment vehicle’ that is tax efficient and if investment growth rates exceed those estimated at the outset, you may be able to pay your mortgage off early or enjoy a lump sum at the end of the repayment period. However, you have no guarantee that you will have sufficient funds to pay off the mortgage in full at the end of the repayment period as the investment could perform below what was assumed at the start. Nevertheless, monitoring the investment’s performance throughout the term can rectify this.

Please be aware of the nature of the risk involved with this type of investment and that the value of your investment may go down as well as up. Past performance is not necessarily a guide to future returns and therefore it is possible that you may not get back the full amount invested.

We offer an extremely competitive service, so for more information contact us on:
Telephone: 0115 945 5199   Fax: 0115 982 6250

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Written quotations are available on request. Loans subject to status

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David Burnell Financial Services Ltd
1 Albert Road, West Bridgford, Nottingham, NG2 5GS

Tel: 0115 945 5199   Fax: 0115 982 6250
Email: info@davidburnell.co.uk

David Burnell Financial Services Limited is an appointed representative of IN Partnership the trading name of The On-Line Partnership Limited
which is authorised and regulated by the Financial Services Authority.

Registered Office 29 Arboretum Street, Nottingham NG1 4JA. Registered in England, Company Number 4619997
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