Financial Products for UK Mortgage Product Training

MORTGAGE

Mortgage is a structured loan- term loan to enable you to buy your own home.

The following is an introduction to type of payment methods.

REPAYMENT MORTGAGE

It is also known as the Capital and interest mortgage. This involves the borrowing of a Sum of money over a chosen term, often 25 years, over which the borrower makes a monthly payment to the lender that includes interest as well as part of the capital. This is the only method which guarantees that by the end of the mortgage term, the mortgage would be paid off. The borrower can see the mortgage debt reducing each year.

INTEREST ONLY MORTAGE

In this kind of payment method the borrower agree to pay only the interest each month and the capital borrowed is paid off the end of the term as lump sum.

This, therefore, requires a separate saving vehicle to run the mortgage so that the mortgage can be paid at the end of term. This is usually in the form of an endowment, ISA or pension.

The three most common savings vehicles used for mortgage repayment are

ISA: One can benefit from the tax concessions available within these plans. It is from the proceeds of your plan that pay off your mortgage. An added opportunity, if ISA performs exceptionally well, or you can afford additional payments it, is that you may be able to repay your mortgage ahead of schedule.

Pension: By using the tax free lump facility available from pension plan to pay off your mortgage debt, you can take advantage of the tax relief they are available on pension contributions.

Endowment: These are life Assurance Policies that serve two purposes. Firstly They Provide Financial Protection in case you die before the end of the mortgage term. Secondly, if you survive throughout the policy term, the investment element of the policy provides a lump sum (maturity value) that be used to repay the outstanding mortgage debt.

Financial Problem – Need Financial Suggestion

The time of financial crisis and people facing problem with finance. There are no solid suggestion in the world by Finance minister or news paper to escape it. But I have some ideas to resolve the financial problem. As I have already mentioned in my previous post about financial crisis in the post of “Financial Crisis Analysis” and in the post I have given some solid reason of the crisis.

It is very clear that financial crisis is actually crisis of market. The product which has been produced are on very slow sale. The crisis is selling problem of products. How it occurs, I have already mentioned in my previous post.

Here I want to give some suggestion to resolve it. Current system of our world is capitalist system. Capitalist system by its nature produced the product for sale not for use in the conditions the contradictions comes with financial crisis.

Capitalist systems produced the product for market and earn profit but the profit has not been distribute as publicly. The profit goes in the single hand. The contraction creates the gap in society and market in both.

In the one hand we see the money and money but on the other hand only the need. The persons who have money, have no need to use all the things which has been produced. In the other hand the person who have need, money is not there to buy the product.

We know all the money is the equal of all the products of world or a nation. The money is exchange value in my previous post as I mentioned. Here the money distribution is not same with the productions due to gaining profit. In this conditions the production of products accumulate in one place and the money became capital on that place automatically.

I want to say if we produce the product for human society not for market then the problem of financial crisis will solve by itself.

The human society run under a system and currently it is in market system. If we make it social system and people energy work for human being needs fulfillment then it will remove financial problem automatically.

I am talking about financial problem but the problem creates by a system not a person so, the system if change, the financial problem remove automatically.