Monthly payments to the lender consist of interest only and the outstanding mortgage remains the same. You make payments to a separate investment with the aim of producing enough capital to repay the mortgage in full at the end of the term. There are a number of different investments that can be used. You can also use a combination of them. Advantages All income and capital growth is free of personal UK income and capital gains taxes. Disadvantages A maximum of £7,000 can be invested in an ISA each tax year subject to annual review by the government. The Government intends to review the terms and availability of ISA in 2009. Some lenders may not accept ISAs. There is no monitoring of the fund to ensure it will repay the mortgage. Click here now to find out how we can help you through the mortgage mine field to the best deal for YOU!
All our advisors at MLM are trained to the highest standard possible to ensure they are able to find the best deal for your financial circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.