Financial Advisor In Edinburgh: How They Can Find The Right Mortgage For You

A financial advisor in Edinburgh can be sought for many different purposes. As the name suggests, they advise people who are interested in securing a financial product of some kind. They can assist with tax and financial planning, investments, annuities, pensions, insurance and, of course, mortgages. It is advice for the latter product, mortgages, which can prove to be one of the most popular services that a financial advisor can offer. This is because, despite how many millions of people in the UK do have a mortgage, many of them don't really understand how they work. Not only this, but your home could end up being repossessed if you do not repay your mortgage on time. This is why sound advice from an experienced financial advisor is crucial.

Learn The Basics Before You Seek Mortgage Advice In Edinburgh

However, it is important to note that when you hire a financial advisor in Edinburgh, you need to still know a thing or two about mortgages. The clue is in the word: advisor. They offer advice, not guarantees. Ultimately, you are the person still in control of your finances and your decisions. But once an advisor understands your financial situation, they can then advise on what mortgage options would best suit you and your family. With that in mind, here are some of the basics to get you started. Mortgages are loans that are secured against the value of your property. Once a mortgage has been paid off, usually (but not always) after 25 years, you will own your home without any property debt. If you cannot keep up your repayments to the lender, they will repossess your home in order to recover the money that they loaned to you. This is why it is critical to seek out mortgage advice in Edinburgh. An independent mortgage advisor in Edinburgh will help you understand if you will be able to manage a mortgage, and will also advise on the best approach to making repayments. There are three ways by which you can repay a mortgage: capital repayment, interest-only or a combination of the two.

Mortgage Option 1 From Financial Advisors In Edinburgh: Capital Repayment

Let's start with capital repayment. This is a repayment plan for a mortgage loan that sees the borrower repay the amount borrowed, as well as any interest that has been accrued during that period. These repayments are usually made on a monthly basis over a period of time that is agreed by all parties. As mentioned, this term is usually 25 years. By choosing this option, your mortgage repayments will continue to decrease throughout the years. This is because when you make your initial repayments, you will mostly be paying off interest. However, as you gradually repay the capital over the term, the repayments will continually reduce the amount of interest that you pay. The less capital you have to pay back, the less interest you will have to pay back. It's important to seek financial advice in Edinburgh before you take on such a mortgage. Mortgages that are settled through capital repayments are more expensive than interest-only loans, but they allow you to repay back faster. When provided with information about your financial circumstances, your selected financial advisors in Edinburgh will be able to advise you on whether or not a capital repayment mortgage is the best option for you.

Mortgage Option 2 From Financial Advisors In Edinburgh: Interest Only

Conversely, a mortgage that is interest-only means that you will only make payments on the interest on the loan, rather than the actual capital. This makes interest-only loans the cheapest type of mortgage option available. As you will know, every mortgage carries interest. So when you pay back a mortgage, you have to pay back both the loan for the value of the property as well as the interest. An interest-only mortgage allows you to pay off that interest first. However once the interest has been paid off, you will still have to settle the original capital debt. But paying off interest-only over a number of years still offers cheaper monthly payments in the short-term. With that being said, there are downsides to interest-only mortgages that your financial advisors in Edinburgh will make you aware of when you discuss your options with them. One such downside is the risk. If you take out an interest-only deal without repaying any capital, you may end up in a situation where your debt is larger than the value of your home. This can happen due to falls in property price. So, again, you should not consider an interest-only mortgage unless and until you have talked to a financial adviser in Edinburgh.

The Difference Between Financial And Mortgage Advice In Edinburgh

To reiterate, when it comes to deciding on which of these two options is best, or whether a combination of the two would be better (known as combined repayment and interest-only mortgages), you need to get good mortgage advice in Edinburgh. This can be sought from either mortgage advisors or financial advisors. As the names suggest, mortgage advisors specialise in mortgage advice, while financial advisors are dedicated to financial advice. Financial advisors can offer advice on a number of financial planning issues – including mortgage advice. However, mortgage advisors do not necessarily have this wider spread of knowledge; so their scope for offering financial advice beyond mortgages will be limited. If you are looking for Edinburgh mortgage advice, it’s well worth approaching financial consultants who can look at your finances in a holistic way. Mortgages can intersect with every aspect of your finances, from savings and investments to pensions and retirement planning, so it's important to have advice that goes beyond just mortgages. If you are looking for a financial advisor in Edinburgh, Rowanbank Financial Consultants Limited provides mortgage advice to people across Edinburgh and central Scotland. All of our advisors are up-to-date on the latest mortgage products available, but can also advise on a much wider array of financial products.

Rowanbank Financial Consultants Limited Can Help If You Need A Financial Advisor In Edinburgh

At Rowanbank Financial Consultants Limited, we're here to look after your financial planning needs – both now and in the future. Our service has been set up to offer a holistic approach to financial planning. We specialise in mortgages, investments, retirement planning and much more. We strive to make financial products as accessible and as easy to understand as possible. For more on information on what a Rowanbank financial advisor in Edinburgh can do, including our mortgage advice services, please visit https://rowanbank-ltd.co.uk. Talk to us today via 0131 554 7365 or email [email protected] today.