Investment Linked Repayment Mortgages
Your monthly instalments will cover interest and contributions to an investment or savings plan such as an Endowment (combining Investments with Life Insurance cover), an Individual Savings Account (ISA) or a Personal Pension Plan.
Growing funds to pay back your loan
The aim of the plan will be to grow the funds sufficiently to repay the remortgages at the end of the period and possibly give you a surplus.
This gives you the opportunity to invest in tax efficient savings plans and to benefit from a rising stock market. Sometimes, the plans include life cover, as with Endowment Mortgages. Contact us for impartial advice.
However stock markets can rise or fall and your savings plan may not grow sufficiently to cover the repayment of the mortgage. You will need to monitor this carefully and increase your savings early if required.