Designed to help keep down the cost of repayment mortgages in the first few years.
Low start facility means that the monthly mortgage repayment does not include the capital for, say, two years.
This means the cost each month is lower than that of a normal mortgage.
The unpaid capital remains outstanding so repayments from year three onwards are higher than normal.
Useful for young professionals who expect big salary increases. In the southeast where property prices are higher than the norm, this type of loan is a necessary evil.
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LOWSTART MORTGAGES