Parity Trust introduced the Mortgage Extension Product in response to data from the Citizens Advice Bureau which confirmed ‘around a million people could have their homes repossessed because they have no way of paying off their interest-only mortgages’.
The FCA has said: “We recognise that customers remain responsible for repaying their mortgages, that repayment of the capital at the end of term is a contractual requirement, and that firms are not obliged to offer options at maturity.”
At Parity Trust we want to help you to remain in your home. Age doesn’t need to be a barrier and as such we do not have any restrictions for older borrowers. For further details please contact us on 023 9237 5921 or you can enquire online using the contact form below.
- Secured Loans from £5,000 - £100,000
- Interest Rate 5.99% (6.16% Typical APR)
- Low Arrangement Fee
- No penalties for overpayments or early settlement
- Home Visit - Financial review carried out in your home
- Terms of up to 20 years available
- Individually tailored loan packages
- Loan capital repaid in full at the end of the term
- No age restrictions for older borrowers
Example 1 — £40,000 Borrowed — Total Term 20 Years
|Loan Type||Loan Amount||Term||Monthly Payment||Interest Rate||Balance After First 10 Years||How it Works — First 10 Years|
|Capital Repayment||£20,000||First 10 years||£221.94||5.99%
In the first 10 years the loan is split equally into two accounts — capital repayment and interest only. You will pay £321.77 per month.
At the end of 10 years, there is nothing owing on the repayment loan account, leaving just £20,000 on the interest only account (half the original amount borrowed).
A new loan account is set up shown below transferring the monies owing on the interest only loan to one capital repayment loan.
|Interest Only||£20,000||First 10 years||£99.83||5.99%
|Total||£40,000||First 10 years||£321.77||5.99%
|Loan Type||Loan Amount||Term||Monthly Payment||Interest Rate||Balance After Final 10 Years||How it Works — Final 10 Years|
|Capital Repayment||£20,000||Final 10 years||£221.94||5.99%
|£0||In the Final 10 years your payment will reduce from £321.77 to £221.94. At the end of the term, you will have repaid your mortgage in full. In this example, the total amount payable is £65,245.20.|
Example 2 — £40,000 Borrowed Over 20 Years
|Loan Type||Loan Amount||Term||Monthly Payment||Interest Rate||Balance After 20 Years||How it Works|
|Capital Repayment||£40,000||20 years||£286.34||5.99%
|£0||In this example the whole amount borrowed is set up on a capital repayment basis. The total amount payable is higher — £68,721.60 — however, the monthly payment remains the same at £286.34 for the entire term.|
“The advisor was very helpful and explained everything and was in constant touch advising on schedule and progress of application”